k-shaped-economy

#k-shaped-economy

@TaoRay: Google's earnings actually point to a bigger macro issue. As I often say, AI's boost to productivity is linear, and the so-called explosion in total factor productivity is pure fiction. The current boom remains highly concentrated in the shovel-selling industry, and beyond driving investment, it's actually squeezing other parts of the economy — stoking inflation, pushing up raw material prices, and suppressing demand...

X AI KOLs Following ↗ · 2026-10-29 Cached

The author argues that Google's earnings reveal a larger macro problem: AI's boost to productivity is linear, the current boom is highly concentrated in the shovel-selling industry, and it may fuel inflation and deepen K-shaped divergence. He advises keeping position sizes in check, building up cash reserves, and treating Google as a reasonably valued cash cow to add to on pullbacks.

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