Does the rise of AI threaten the economic balance of the United States?

The Impact of AI on the American Economy: A Threat to Balance?

Artificial intelligence (AI) is at the center of many discussions about the future of work, capitalism, and the American economy. The rise of AI could well redefine socio-economic systems in the United States, exacerbating inequalities between the privileged and the disadvantaged. The demand for AI computing places considerable pressure on existing infrastructures, to the point of threatening the very foundations of democracy. Each release of economic figures, such as those related to employment, seems increasingly influenced by the shadow of AI. This article explores why the AI bubble could take a negative turn.

Observing the American labor market, it appears that AI could accelerate the erosion of equality, increase turnover among older workers, and reduce the share of gross domestic product (GDP) going to employees. These trends, already well entrenched in the history of capitalism and democracy in the United States, seem to be intensifying. The economy of the elites has become the norm, where American venture capitalists, under the Trump administration, position themselves as authority figures within working groups led by Kevin Warsh at the Federal Reserve. This situation raises questions about the economic future of the country.

A Changing Labor Market

Analysis of macroeconomic trends reveals troubling developments. Long-term unemployment decreased in July, not due to an increase in hiring, but because many Americans stopped looking for work. New jobs are primarily concentrated in the healthcare sector, complicating the situation for American men, even though they are often "AI natives," meaning workers using AI to solve problems. The share of workers in GDP reached a historically low level in the second quarter, according to the Bureau of Labor Statistics (BLS). With 23% of the American workforce aged 55 or older, a wave of retirements is imminent. AI is unlikely to compensate for this loss of talent, especially as immigration has been drastically reduced under the Trump administration.

The unemployment rate, once a key indicator, now seems outdated for tracking major labor market changes. Yet, it remains the preferred indicator for policymakers, the media, and economists. With the rise of the gig economy, an aging population, and the care of elderly parents, the situation is becoming increasingly complex. The future of work can no longer be viewed in binary terms.

Declining Workforce Participation

The labor force participation rate in the United States fell to 61.4% in July, a figure well below that of many other countries. AI is redefining recruitment and skill needs, emphasizing efficiency, flatter management systems, and cost reduction to integrate AI, whose systems have yet to demonstrate significant gains in productivity or return on investment. Generative AI could further reduce workforce participation, as a new generation will have to discover for themselves what the future of work means with fewer entry-level opportunities in this low-hiring context.

AI acts both as a disruptor and a catalyst. When individuals leave the labor market and stop looking for work, they simply are no longer counted. Recent figures show that non-farm jobs decreased by 23,000 in July, contradicting economists' forecasts of an increase of 80,000. Payroll revisions reveal a darker reality: by 2026, 1.4 million American workers had left the labor force. Excluding the pandemic years of 2020 and 2021, the labor force participation rate is at its lowest level since 1976.

Since 2022, generative AI does not seem to offer more opportunities for American workers. The "K" economy (characterized by low hiring and low layoffs) combined with higher inflation is toxic for quality of life and daily accessibility. It is not just a matter of fewer opportunities, but also of tougher choices for many American families and single households. However, the decline in the labor force participation rate is primarily due to an aging workforce, reduced immigration, and a tighter labor market, some factors of which may also be linked to AI.

The Challenges of AI and Mental Health

The impacts on mental health related to technology and the isolation felt by many American men are not reflected in these figures. Yet, American workers are not benefiting from the GDP gains that the deployment of data centers brings to the United States. In fact, American workers have once again seen their share of the American economy fall to a historically low level in the second quarter, amid a productivity boom that produces output gains exceeding wage growth, as reported by the Bureau of Labor Statistics on August 6, 2026.

Worrying Trends

Several trends raise concern:

• The labor force participation rate is declining.
• The share of workers in GDP is decreasing.
• The exodus of workers from the labor market is increasing.
• The percentage of middle-aged men who are not working is rising decade after decade following each crisis.
• The youngest and oldest workers are the most penalized in an AI-driven job market.
• Workers aged 55 and older represent 23.2% of the American workforce, and many are taking or will take early retirement.
• Debt incurred for AI infrastructure could worsen the debt-to-GDP ratio, national debt, and the ability to make sound decisions for the country in the coming years.
• The cost of computing and the growing demand for AI computing will peak just as payments on the national debt begin to accumulate dangerously over the next decade or 15 years.
• Margin debt is increasing so rapidly (mid to late 2026) that it is a leading indicator of a market bubble event.

The Pressure of Debt and Inflation

The ratio of U.S. federal debt to GDP is about 123%, according to recent federal and economic reports, showing a national public debt of approximately $37 to $39 trillion compared to an annual GDP of about $30 to $31 trillion. This situation is expected to worsen in the coming years, likely accelerated by the construction costs of AI computing, factories, data centers, and the circular financing of the project.

It is generally accepted that AI will significantly increase inflation or, at the very least, make inflation more persistent. The annual inflation rate in the United States is currently about 3.5% for the 12-month period ending in June 2026, down from 4.2% in May. Public debt-to-GDP ratios remain high in many advanced and emerging economies, as does inflation, which could be more systemic due to the pressure of computing demand. Even as the demand for computing fuels geopolitical competition, creating dangerous bottlenecks that exert circular pressure on inflation and the cost of that computing.

The Consequences of Economic Policies

Economic policies, such as Trump's tariffs and the war in Iran, combined with his pro-AI business-friendly policies, are all incredibly inflationary. Consumer sentiment among American workers toward AI has rapidly declined, especially between 2024 and 2027. Trump's polls regarding the war or his performance on the American economy seem correlated. Young men, who more frequently use generative AI and are more likely to be advanced users, are precisely those who appear most affected by the economic consequences of AI in general.

One could even argue that the demand for AI computing is harming young men at their peak professional age. The tighter labor market conceals a Gremlin, which is also the shadow of AI. While persistently higher inflation and lower wage gains mean they are becoming poorer during the AI boom. The possibility that AI agents will increase layoffs is a persistent fear in several sectors.

Obviously, when wage growth outpaces inflation, workers gain purchasing power. When inflation rises faster, real wages fall, and everyday items become less affordable. What happens then for an entire generation of men? Trapped in an accessibility crisis while a tighter labor market favors women, who are often more involved in the healthcare system, in more resilient service jobs, and caring for a rapidly aging population?

Growing Inequalities

During this AI boom in mid-2020s America, the top 10% of the American financial elite contribute nearly 50% of consumer spending, according to Moody Analytics in January 2026. These high earners, defined as Americans earning at least $251,000 in 2024 according to census data, accounted for 49.2% of consumer spending in the second quarter of 2025. Does AI make us a less egalitarian and less meritocratic society? What kind of world will the demand for computing create?

Will generative AI strengthen society and give us more options? Or will it begin to deprive us of our choices, freedoms, and dignity? Not only does generative AI not seem to significantly increase productivity, but over the past three years, as it has become a more prominent adoption topic, the positive trend of wage growth (relative to inflation) that was hoped for has recently stagnated. Generative AI seems to impoverish many Americans, especially if they have no discretionary savings to use in an artificially inflated stock market.

This creates increasing socio-economic divisions around AI. If generative AI and the demand for computing are contributing factors to the widening "K" economy, the accessibility crisis of the 2020s is expected to worsen in the 2030s. Furthermore, AI's contribution to GDP through the construction of data centers does not reach the wallets of consumers or most workers. It does not trickle down.