Economist Baker explains: AI bubble is about to burst
Economist Dean Baker (Center for Economic and Policy Research, author of Rigged and creator of the AI Bubble Monitor) joins Taya Graham and Stephen Janis to break down why the productivity data doesn’t match the hype, why Palantir’s CEO seemed to be panicking on live TV, why Bernie Sanders’ AI sovereign wealth fund idea might backfire, and what signs to watch for if this bubble bursts.
Credits:
Transcript
The following is a rushed transcript and may contain errors. It will be updated.
Taya Graham:
Hello, my name is Taya Graham and welcome to the Inequality Watch Report, a show that examines government policy and action through the lens of extreme economic inequality, the existential issue of our time. Today, we’re going to discuss a technology which we’ve been told will transform our lives, an invention that has been touted as the ultimate arbiter of our collective futures, whether we like it or not. Of course, I’m talking about artificial intelligence, but with the promise also comes doubt and questions and most of all, a lack of clarity on how we’ll impact the working people of this country. AI leaders have casually warned us that their products could eliminate 40 to 50% of white collar jobs more than the losses in the Great Depression. They’ve promised that technology will be so disruptive that even staunch capitalists have discussed providing a UBI or universal basic income for Americans who will be left out.
They’ve borrowed money at such predigious rates to fund data centers that even Wall Street is beginning to just say no. And now some of the biggest names are saying it’s not working out as
Richard Wolff: Why Europe’s Leaders Are Provoking War with Russia
This story originally appeared in Professor Richard Wolff’s Substack on July 21, 2026. It is shared here with permission.
Deeply divided by nationalism and deprived of its vast colonies by the last century’s catastrophic two world wars, Western Europe has been in decline ever since. Recently, that decline has become drastic and desperate as Western Europe falls ever further behind — economically, militarily, and politically — today’s two superpowers: the US and China. Mediocre and unpopular leaders reflect Western European decline. They bet and built their careers on accepting junior partner positions vis-à-vis the United States. But Europe’s decline now threatens to split Europe apart. Inside each nation, rich and powerful minorities use their social positions to sustain their wealth and power while the masses bear most of the burdens of decline offloaded onto them by the rich and powerful. The problems flowing from these cumulative developments are approaching points of social explosion. Despite the lessons taught by the two world wars, many Western European leaders once again provoke and prepare for a war, this time against Russia, notwithstanding the awful risks of nuclear weapons. One key question to ask: why is this happening?
From 1945 to 1990, Cold War set Western European nations against the USSR and its Eastern European allies in many ways and on many levels. Yet that war remained cold. In 2026, after more than three decades of post-Cold War peace, a military war between a largely unified Europe (East and West) and post-Soviet Russia seems imminent. Such a war has been prepared by NATO’s growth, its moving eastward toward Russian borders since 1990; by Russia’s 2022 invasion
Senators urge regulator to ‘crack down on prediction markets’ amid wildfire betting
This story originally appeared in Common Dreams on AUg. 04, 2026. It is shared here under a Creative Commons (CC BY-NC-ND 3.0) license.
As wildfires ravaged large swaths of the Western US, a group of Democratic senators on Monday called on federal regulators to rein in prediction markets offering contracts tied to such disasters, warning that turning climate-fueled extreme weather into financial wagers creates “perverse incentives” that could motivate arson and other crimes.
In a letter to Commodity Futures Trading Commission (CFTC) Chair Michael Selig, Sens. Jeff Merkley (Ore.), Alex Padilla (Calif.), Jeanne Shaheen (NH), Adam Schiff (Calif.), Jacky Rosen (Nevada), Catherine Cortez Masto (Nevada), Martin Heinrich (NM), Ron Wyden (Ore.), and Amy Klobuchar (Minn.) wrote that “prediction markets have been enabled to expand rapidly, increasingly inviting speculation on war, political violence, disasters, and public emergencies that raise ethical and public policy concerns.”
These markets risk creating perverse incentives, undermining public trust, and commodifying human suffering in ways that warrant careful scrutiny,” the lawmakers continued. “Recent public reports have highlighted how Polymarket—the largest prediction market platform in the world—accepted more than $1.2 million in bets surrounding the Palisades and Eaton fires in January 2025. These fires devastated the Los Angeles area, claiming the lives of 31 people and destroying more than 16,000 structures.”
“Offering bets on destructive wildfires threatens to minimize communities’ suffering all so the rich and powerful can profit,” the letter argues. “There’s also the heightened risk—according to state and local fire officials—that individuals could be tempted to commit arson in order to make sure their bets are successful.”
Allowing prediction markets on wildfires is outrageously dangerous and will incentivize bad actors to spread or even start fires themselves. Frankly, this is betting on the suffering of our neighbors
Railroad jobs have ‘gotten worse’ since Biden and Congress blocked workers from striking
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In 2022, the United States nearly experienced its first national railroad strike in decades, until then-President Joe Biden, along with Democrats and Republicans in Congress, stepped in to block a strike before it could begin. Rail labor unions were forced to accept contracts that did not substantively address long-brewing crises in the freight rail industry that have had disastrous consequences for frontline workers, trackside communities like East Palestine, Ohio, the passenger rail system, and the US supply chain writ large. In this episode of Working People, we speak with returning guest “Jay,” a veteran train dispatcher who’s been in the industry for 22 years, about what has changed—and what hasn’t—for rank-and-file railroad workers on the job over the last four years.
Additional links/info:
Maximillian Alvarez, Working People / TRNN, “Ask a railroad worker: How did railroad jobs get so bad?””
Maximillian Alvarez, Working People / TRNN, “Freight workers explain why a national railroad strike is looming”
Maximillian Alvarez, Working People / TRNN, “Railroad workers speak out after Congress and Biden block rail strike”
Mike L, TRNN, “A carman’s perspective on the East Palestine derailment and the railroad industry as a whole”
Maximillian Alvarez, TRNN, “US freight workers say it’s time to nationalize the railroads”
Featured Music:
Jules Taylor, Working People Theme Song
Credits:
Audio Post-Production: Jules Taylor
Transcript
The following is a rushed transcript and may contain errors. It will be updated.
Maximillian Alvarez: Alright. Welcome everyone to Working People, a podcast about the lives, jobs, dreams, and struggles of the working class today. Working People is a proud member of the Labor Radio Podcast Network and is brought to you in partnership with In These Times Magazine and The Real News Network.
