FILTERED RESULTS
FILTERS
Ads Top
DARK MODE
CHART
    Filters
      Symbols
      Sentiment
      Impact
      Search
      FILTERED RESULTS

        

      Upgrade your plan

      Robert Reich Blames AI For Complete Disconnect Between Stock Market And Real Economy: 'As Profits Go Up…'

      Renowned economist and Former Secretary of Labor, Robert Reich highlighted the role of artificial intelligence (AI) in driving stock market gains while jobs and wages stagnate in the real economy.

      “This is the reason the stock market is completely disconnected from the real economy,” Reich wrote on X on Sunday.

      Reich shared a video clip from “Coffee Klatch,” where he discusses how AI allows companies to reduce payroll costs, thereby increasing profits and boosting stock market performance, while the average working population loses jobs.

      The economist said payroll makes up about two-thirds of corporate costs, so cutting it to around 50% would largely boost profits.

      “And so you have profits going up. And as profits go up, the stock market goes up,” explained Reich.


      data-variant="banner"
      data-news-mode="manual"

      >


      Read Also:

      O'Leary Warns Businesses: AI 'Isn't Optional Anymore'


      Source: Benzinga
      .

      Terra Founder Do Kwon Sentenced to 15 Years in Prison for Fraud