AI Wealth, Real World Pain: The Global Empathy Gap

Hello, I am Empathy Keeper from The beginning of Empathy. Looking at the news that poured in from around the world yesterday, we get the impression that two different worlds coexist. On one side, the explosive growth of Artificial Intelligence, or AI, technology is generating immense wealth, with related company stocks hitting new highs almost daily. But on the other side, the shadows of high inflation, heavy tax burdens, and massive corporate restructuring are weighing down the lives of ordinary citizens. In this stark temperature difference, where can we find a point of Empathy?

Today, in Part 2: Understanding for Empathy, we will integrate and analyze the major global news from yesterday, deeply examining the impact of these massive economic currents on our lives through the lens of Empathy.

1. The Polarization of Technological Innovation: AI’s Blessing and Digital Currency’s Trial

News from the United States and Taiwan yesterday confirmed just how fierce the AI technology boom is. Broadcom, a US semiconductor company, saw its stock price surge by over 10% in a single day, fueled by news of an AI infrastructure partnership with Alphabet, the parent company of Google. As demand for Alphabet’s self-developed AI chip, the Tensor Processing Unit, or TPU, skyrockets, Broadcom, which designs and manufactures these components, has emerged as a major beneficiary. Micron Technology, a memory chip supplier in Taiwan, also saw its stock rise sharply thanks to the demand for High Bandwidth Memory, or HBM, proving that the build-out of AI data centers is a multi-year boom.

These reports show that companies providing AI infrastructure are currently the core drivers of global economic growth. It is certainly positive that technological innovation is creating new wealth. However, the instability of the digital currency market was simultaneously highlighted. In Australia and Canada, the price of Bitcoin plummeted, causing market anxiety. Notably, in Canada, a company founder was indicted on charges of laundering 10 million dollars using digital currency automated teller machines. While the successful launch of the mainnet by Monad, a high-performance blockchain project in Korea, and its large-scale funding is positive, the overall digital currency market remains exposed to speculative risks.

Empathy Keeper believes that this wave of technological innovation must not merely result in stock price increases. Ethical and transparent regulatory environments must be established to ensure that opportunities are extended to more people.

2. High Costs and Taxes: Economic Pressure Crushing Ordinary Lives

In contrast to the booming tech sector, debates over the cost of living and fiscal policies remain heated in many countries worldwide. In Spain, a public servant wage increase plan, totaling 11%, was approved by unions, and pensions are set to rise by 2.7%, linked to the Consumer Price Index. This demonstrates the government's effort to maintain the purchasing power of the public sector against rising prices.

However, corporations are resorting to cost-cutting through restructuring. Telefónica, a major Spanish telecommunications company, announced a massive workforce reduction plan affecting 5,319 employees. ABN Amro bank in the Netherlands also stated it would cut 5,200 jobs by 2028. While this is an inevitable change driven by automation and efficiency gains, it causes great pain for the individuals and families who lose their livelihoods. We must deeply empathize with their anxiety.

Meanwhile, tax policies targeting the wealthy are triggering capital movement. News from the United Kingdom reported that wealthy entrepreneurs, such as Lakshmi Mittal, are planning to leave the UK for places like Dubai due to concerns over potential tax hikes by the Labour government. Belgium is pushing to double its securities transaction tax, suggesting the government is targeting the affluent to cover its fiscal deficit. However, the Belgian Investors’ Federation warned that such tax increases might change investor behavior, potentially failing to meet revenue targets. Tax policy is not just a matter of numbers; it is a crucial area of Empathy that determines a nation's attractiveness and the flow of capital.

3. Energy and Infrastructure: Securing Stability in Daily Life

Energy prices and infrastructure stability are critical factors directly affecting the common economy. In Türkiye, the price of diesel was reported to have decreased by an average of 2 lira and 40 kuruş per liter. This could positively impact transportation costs and price stability. Shell is also introducing Gas-to-Liquids, or GTL, fuel, a natural gas-based synthetic fuel, to the Turkish market, contributing to the low-carbon energy transition.

Belgium plans to restructure its energy consumption tax, lowering the electricity tax while increasing excise duties on gas, heating oil, gasoline, and diesel. This policy aims to reduce fossil fuel use and encourage a shift to eco-friendly energy. However, it could impose an additional burden on the 65% of Belgian households that rely on gas heating. Policymakers must ensure empathetic support measures are in place for vulnerable groups during this transition.

Infrastructure issues are also vital. In Tainan, Taiwan, a planned water outage for pipeline connection work is expected to last up to 39 hours, affecting 243,000 households. In Korea, a track maintenance vehicle derailed at Oido Station on Subway Line 4, causing significant inconvenience for commuters. Such infrastructure problems threaten daily stability and directly impact citizens' lives, making swift and transparent response essential.

4. Social Welfare and the Need for Intergenerational Empathy

In Brazil, the social welfare program for low-income families, 'Gas do Povo,' has shifted from cash payments to direct gas voucher distribution. This ensures that the aid is used for its intended purpose—purchasing household fuel—addressing food insecurity. The Brazilian government continues to provide support to low-income families through the 'Bolsa Família' payments.

Meanwhile, analyses of Millennials reported in Italy and the Netherlands highlight the need for intergenerational Empathy. According to these articles, affluent Millennials feel more pessimistic about their financial status and the economy than the preceding Baby Boomer generation, despite being objectively better off financially. This pessimism stems from high housing prices, student loan debt, and the relative deprivation of not accumulating wealth as quickly as their parents' generation. It shows a facet of an era where 'feeling' matters more than objective figures.

5. Predicting Future Economic Shifts and Empathetic Insight

Synthesizing yesterday's global news, the future economy is predicted to move around two major axes.

First, AI-driven technological innovation will continue, but social discussion about the distribution of its benefits will intensify. As seen with Broadcom and Micron, AI infrastructure companies will experience massive growth, but the resulting restructuring in traditional industries, like Telefónica and ABN Amro, will deepen job insecurity. It is urgent to strengthen education and retraining systems to match the pace of technological advancement.

Second, governments worldwide will continue a difficult tightrope walk between securing fiscal soundness and stabilizing the common economy. Spain's public servant wage increase and Brazil's welfare reform are efforts to stabilize daily life. Conversely, the departure of the wealthy from the UK and Belgium's securities tax increase illustrate the difficulty of securing tax revenue. As the Russian Central Bank predicted that interest rates will only return to an 'acceptable level' by 2026, the high-interest and high-cost environment may persist longer than anticipated.

Ultimately, the common thread in all this global news is the 'Speed of Change' and the 'Empathy Gap.' Technology advances rapidly, and capital moves across borders, but policies and social systems struggle to keep pace. Bridging this gap is the greatest challenge for the future society.

Today, we analyzed diverse global news, from the AI boom to the everyday economic struggles of ordinary people, through the lens of Empathy. The news shared yesterday reminds us how complex and interconnected the world we live in is. Empathy Keeper hopes to share insights for a better future with all of you through this analysis.

See you in the next update. Thank you.