Reuters reported a historic boom in investment in AI in the United States
The AI boom has enriched the richest 1% of Americans, while 99% of households have lost a share of the country’s total wealth. The least well-off half received less than $500 billion of the $26 trillion gain
The United States is experiencing a large-scale technological revolution associated with the development of artificial intelligence (AI). Investment in this area may exceed the costs of the previous boom around telecommunications, as well as the construction of railways and roads.
The development of AI led to a sharp rise in the stock market and an increase in the welfare of Americans. However, the wealthiest citizens benefited the most, while most Americans still face the high cost of living.
According to the Federal Reserve, from the end of Joe Biden’s presidency until mid-2026, the total wealth of American households grew by 16.5%, or about $26 trillion. However, only the richest 1% of the population increased their share of the total wealth of the country. The remaining 99 percent has declined. The poorest half of American households received less than $500 billion in total wealth gains. For this group, the increase was about 10%.
Consumer spending in the U.S. continues to rise, but inflation is eating up much of the increase. With prices rising, Americans are spending at about the same rate as before the coronavirus pandemic.
Back in August, The Washington Post reported that US residents began to look for discounts more often, choose cheaper products, visit restaurants less often and refuse expensive services. Mark Zandi, chief economist at Moody’s Analytics, noted that overall consumer spending figures are largely supported by wealthy Americans benefiting from a rising stock market.
Additional pressure on prices is exerted by import duties, rising energy prices due to the conflict with Iran and an investment boom in the field of AI. The cost of gasoline and beef has increased significantly. Access to housing remains a major problem. Mortgage rates have risen by more than one percentage point over the past year, making it even harder for American families to buy property.
Against the backdrop of continuing inflation, the US Federal Reserve on September 16 raised the key rate for the first time since July 2023 - by 25 basis points, to 3.75-4% per annum. The head of the regulator Kevin Warsh explained the decision by the need to return inflation to the target level of 2%. The Fed also raised its inflation forecast for the end of 2026 from 3.6 to 3.7 percent.
During the election campaign of 2024, President Donald Trump promised not only to contain inflation, but also to achieve lower prices. During his second term, the cost of living continued to rise. According to Reuters, this helps explain the discontent of Americans with the economic situation ahead of the midterm elections to the US Congress in November.
