In this episode of Rubber Meets the Road Economics, investor Hunter Craig sits down with Professor Edwin T. Burton from the University of Virginia to break down the economic realities behind the AI boom.

While tech companies are pouring billions into artificial intelligence, the rest of the economy is slowing — a trend masked by massive capital expenditures in data centers, chips, and defensive spending. Professor Burton explores whether AI is truly creating value or simply inflating numbers, what hidden distress can be found in recent bankruptcies, and how high interest rates and chaotic tariff policies are reshaping business realities.

They also discuss the Fed’s upcoming decisions, the power of the repo market, and why inflation may be sticking around longer than policymakers hope.

Professor Edwin T. Burton is a distinguished economist, investor, and professor at the University of Virginia. His work bridges academic insight and real-world market behavior, with deep expertise in monetary policy, investment strategy, and financial market structure. Professor Burton is known for his clear, candid approach to explaining complex economic issues — and for being unafraid to question the consensus.

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