Allison Schrager: Does the US Now Have a Casino Economy? Yes and No

The argument for a casino economy is — well, just look around. 

First there is AI, which like all new technologies creates boom-and-bust cycles that involve overinvestment in the wrong things, overvalued stocks, speculation and, eventually, a crash. 

AI may yet transform the economy and enrich humanity, but along the way it will create new financial risks and more than a few bumps.

The US is also emerging from a period of very low interest rates, which tend to invite excess speculation. 

Low rates contributed to the opaque risks brewing in private credit, for example. And there is no denying that there are some odd things going on with assets with questionable value, such as crypto, meme stocks and gold, not to mention the widespread betting on sports and political events.

The argument against is more subtle. Can the same generation that was raised by helicopter parents really be turning the US economy into a casino?

One theory is that too many “good” risks — such as getting married, starting a family or buying a house — are too expensive. If people feel shut out of productive risk-taking, maybe they bet on sports or meme stocks instead. 

But previous generations had even less money, and they still managed to achieve these life milestones. Besides, just because someone can’t afford to buy a house doesn’t mean they can’t take a healthy financial risk. 

How about investing in an index fund?

it’s important not to downplay the role of personal experience. This is a generation that took fewer risks as children and so may be less skilled in risk-taking than their parents 

The economy feels frenetic, and markets feel frothy, because they are in that part of the cycle when people take more outlandish bets.

Allison Schrager Bloomberg 17 November 2025

https://www.bloomberg.com/opinion/articles/2025-11-17/does-the-us-now-have-a-casino-economy 


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