Post by @ln@social.linux.pizza
This analyst's report from Apollo about AI uses the term "S&P 493" to refer to the "S&P 500 minus the Mag 7" - because if you take out the AI companies, the S&P 500 is tanking. https://www.apollo.com/wealth/insights-news/insights/daily-spark/no-signs-of-ai-payoff-outside-the-tech-sector
@pluralistic When the Draghi report came out I did a back-of-the-envelope calculation to compare the EU and US-minus-BigTech economies and it was very similar in size and growth.
(Disclaimer: not an economist and the EU needs reform for sure)
@ln @pluralistic There is now a decent body of work that has looked into these (largely superficial) differences in economic performance between the EU and US.
Many findings agree that size and growth are largely similar. The enormous amounts of debt raised (and spent) to fill datacentre construction pipelines is distorting economic figures.
Here are some starters:
https://www.cer.eu/insights/why-europe-should-not-worry-about-us-out-performance
https://www.bruegel.org/analysis/european-unions-remarkable-growth-performance-relative-united-states
https://fortune.com/2025/10/07/data-centers-gdp-growth-zero-first-half-2025-jason-furman-harvard-economist/