Governments are making a dangerous bet on the AI boom

I wonder about Japan and Europe these days. Back in the 80s, when Japan was pursuing the "Fifth-Generation Computers", EU and US scrambled to compete with Japan. Like, it was a big deal for strategists and decision-making high-level politicians of that era.

Now in 2020s, it seems only China is tailing US and in turn, US is wary of China. What gives?

It's private companies making a bet on the AI boom.

What governments do (which is the actual content of the article) is betting on economic growth to exceed the growing debt.

https://archive.is/VZbsS

It's not a bet.

The counterfactual was never "cutting pensions and medicare". That wasn't on the table and no government would ever commit suicide and pass it. It was either, spend until the economy completely collapses under the weight of debt and hyperinflation, or do exactly the same thing but pray for a miracle while doing so.

So, we're doing the second one.

A "bet" implies there's a risk of losing if it doesn't play out. As far as the individuals in the Govt and the involved companies are concerned, there is no risk for them. It's not their money, and the individuals will come out much better off regardless of outcome. It is simply a good investment.

Curious: Is there any technologies and their adoption that were successful that Economist was wrong, or right about?

Link?

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