Rep. Alexandria Ocasio-Cortez’s appearance at a recent House Oversight Subcommittee hearing stirred significant debate, particularly over her framing of the artificial intelligence sector’s impact on America’s economy. In her remarks, Ocasio-Cortez warned of looming “2008-style threats” linked to an alleged “AI bubble.” She described disturbing trends of Americans turning to chatbots amid claims of “suicidality” and what she termed “AI psychosis.” These dramatic assertions garnered attention not for their basis in fact but for how they starkly diverged from the current economic realities.
The hearing, focused on ensuring the safety and transparency of artificial intelligence, featured Dr. Brian King, a digital privacy expert. Despite Ocasio-Cortez’s persistent efforts to draw a connection between tech companies and a supposed mental health crisis, her arguments lacked substance. Throughout her statements, she blamed major corporations like Microsoft and Amazon for issues she attributes to AI tools, overlooking the tangible economic growth occurring under President Trump.
Contrarily, economic indicators tell a different story. Under Trump’s leadership, the U.S. has seen substantial economic expansion. Manufacturing growth has reached levels not seen since 2018. Small-business optimism is buoyant, returning to pre-pandemic measures. Energy prices remain stable, thanks to Trump’s policies that revitalized oil and gas operations. Meanwhile, inflation has decreased for nine consecutive months, and wages are increasingly surpassing inflation rates, especially for working-class families who experienced hardships during the previous administration. Yet, none of these facts found their way into Ocasio-Cortez’s presentation.
Her comments on an impending “AI bubble” failed to acknowledge the reality that companies are actively investing in workforce expansion and infrastructure development across the country. States like Texas, Arizona, Georgia, and Ohio are witnessing growth as businesses respond to Trump’s regulatory reforms, which have opened doors for innovation after years of stagnation. Notably, even Dr. King, whom Ocasio-Cortez sought to support her claims, indicated that privacy policies naturally evolve with the launch of new products rather than suggesting any imminent destabilization of the economy due to artificial intelligence.
Ocasio-Cortez’s conclusion—that Congress should “never entertain a bailout” in the event of an AI sector collapse—raised eyebrows. This statement reveals a disconnect, as there is no current collapse on the horizon nor any suggestion of a bailout being proposed. Rather, Ocasio-Cortez’s testimony seems to align with a broader strategy among some progressive lawmakers to challenge an industry flourishing under the Trump administration, which they have consistently criticized.
The hearing accentuates a larger narrative: while certain Democrats rev up fears surrounding economic stability, Trump’s administration is steering the country toward the most robust and diverse economic recovery seen in over a decade. This recovery is driven by American innovation and reflects an economy on the upswing, not one teetering on the brink of collapse. Ocasio-Cortez’s approach may appeal to those with a penchant for dramatic rhetoric, but it starkly contrasts with the factual landscape of American economic growth today.
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