The economy is growing at a rapid rate, due largely to the AI boom and spending by wealthy Americans (what I dubbed the return of the “K-shaped economy” where the top 20 percent are thriving and the bottom 80 percent are just getting by). As Diane Swonk, the chief economist at accounting firm KPMG, who was the first to call this a “jobless boom” in October, put it, AI was “not the primary driver of the weakness in the labor market to date.” So far, its effects have mostly been felt among recent college graduates. Not only is spending by the rich strong and the AI buildout ongoing, but on top of that, lower interest rates, a regulatory rollback, and reduced taxes from the One Big Beautiful Bill enacted last year all give extra fuel to growth in the short run.
Author: Heather Long
Published at: 2026-02-02 23:50:39
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