AI Boom Masks Economic Strain on Small Businesses Amid Rising Costs
The AI-driven rally in tech stocks has propelled Wall Street to record highs, yet Main Street businesses face mounting pressures. In Birmingham, Alabama, Cameron Pappas of Norton’s Florist—a century-old family business—reveals how Trump-era tariffs force creative cost-cutting. "We’ve trimmed bouquets from 25 stems to 21 just to avoid price hikes," he told CNBC, as the shop’s $4 million revenue gets squeezed by soaring import costs.
JPMorgan Chase data shows AI investments contributed 1.1% to U.S. GDP growth in early 2025, eclipsing consumer spending. While Commerce Department figures rebounded to 3.8% Q2 growth after a 0.5% contraction, manufacturing sectors show cracks beneath the surface. The divergence highlights an economy where trillion-dollar tech firms thrive as traditional businesses struggle to adapt.
