GDP Growth Is AI-Powered & G-Shaped (Not K-Shaped)

Looking solely at Q2’s GDP growth rate, one would think the economy is weakening. Not so, say Ed and Elias. In fact, demand of all types strengthened last quarter, buoyed by brisk consumer spending, thanks to the Baby Boomers, and brisk business investment, thanks to the AI boom. The lower GDP growth rate was a function of surging imports, which aren’t bad news. Imports often rise in response to a strong domestic economy. … Also: As the economic engine heated up last quarter, so did inflation. The same consumer spending and AI capex trends keeping the economy vibrant are also boosting inflation, along with higher energy prices. … And: Ed reviews “Shipwrecked: Nightmare at Sea” (+ + +).