GROWTH WITHOUT YOU (Guest: Paul Krake)

Artificial intelligence is fundamentally rewiring the global economy by replacing expensive human cognition with cheaper artificial alternatives, effectively removing the last layer of economic friction. This transition suggests a shift toward a post-cyclical world, as innovation increasingly dampens traditional boom-bust cycles. While large, entrenched corporations currently dominate the landscape and capture record profit margins, the widespread adoption of AI threatens to displace up to 10% of knowledge workers by 2035. Current tax structures exacerbate this trend by incentivizing companies to replace labor with software. Investors should look beyond the initial infrastructure build-out and focus on companies capable of leveraging AI to drive margin expansion. Ultimately, the sustainability of this growth depends on a stable social contract and a rebalancing of the tax burden to support a workforce facing unprecedented structural changes.