Excess Returns

Podbit · Excess Returns

The Trillion Dollar Gap | Aswath Damodaran on SpaceX, AI and the Big Market Delusion

Explore episode Jun 19, 2026
Society & Culture
Big AI Market Stories Are Terrifying for Society

The Trillion Dollar Gap | Aswath Damodaran on SpaceX, AI an… · Jun 19, 2026 Society & Culture

AI can only justify $10–25 trillion market valuations if it replaces people, not just assists them. If those stories come true, half of all white-collar workers lose their jobs. Damodaran draws a sharp contrast with the 1990s factory closures: the same people who dismissed displaced steelworkers with 'learn to code' are now the target. This time, the advice is 'learn to plumb.'

Where this was said

AI disruption, labor markets, and the speed of technological change

At 46:00 · chapter starts 43:57

If AI's big market stories come true, half of white-collar workers lose their jobs. Damodaran draws parallels to 1990s factory job displacement, warning society isn't planning for this.

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