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Zeitgeist — a spike by Chris Gathercole
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  2. Ed Zitron — Where's Your Ed At / Better Offline/

Premium: How Has AI Changed The Economy?

Newsletter · Watch/Read · (gathered 2026-10-05)

  • Ed Zitron argues that AI’s actual contribution to America’s GDP is negligible when capital expenditure (capex) on infrastructure like data centers and GPUs is removed, challenging optimistic projections.
  • He highlights that Goldman Sachs’ projected 1.9% of GDP for AI investment in 2026 is almost entirely due to data center construction and GPU sales, not revenue from AI services or productivity, creating a temporary boost that will eventually slow.
  • Zitron critiques the BLS’s Producer Price Index for Software Publishers, claiming its “quality” adjustments inaccurately suggest software prices are lower than in 1997, despite “SaaS inflation” running significantly higher than consumer inflation in 2025, potentially leading to an overstatement of software’s GDP contribution.
  • The author warns that most economic analyses of AI’s contribution are based on “flawed data or flimsy assumptions,” urging readers to look beyond capex and be wary of potentially misstated official statistics regarding software sales’ impact on GDP since 2022.