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All of these things are only possible for the majority in a labor constrained economy. Like the ones our parents experienced in the 50s. We're in a capital co

by ep103 8y ago

All of these things are only possible for the majority in a labor constrained economy. Like the ones our parents experienced in the 50s. We're in a capital constrained economy. Its simply not an option for most people.

ApolloFortyNine 8y ago
There's 7.1 million open jobs in the U.S. https://www.bls.gov/news.release/jolts.nr0.htm https://www.bls.gov/news.release/jolts.nr0.htm Plus this is hackernews. Does anyone here think software isn't hiring right now?
- HarryHirsch 8y ago
  Meanwhile, in what's supposedly the best labour market in 50 years salaries just aren't rising. Who cares about software, software doesn't employ enough people to make an impact in the economy.
  - chrisco255 8y ago
    Yes, they are: https://www.cnbc.com/2018/10/31/wages-and-salaries-jump-by-3point1percent-highest-level-in-a-decade.html https://www.cnbc.com/2018/10/31/wages-and-salaries-jump-by-3... 3.1 percent wage increase in Q3 2018. I see fast food jobs in my city for $13 an hour.
    - HarryHirsch 8y ago
      In my corner of the woods they advertised for an entry-level chemical technician, something that requires a BS in the subject, salary 30 kUSD. How you can pay on that for groceries, the rent, student loans and save for retirement is beyond me.
      - arcanus 8y ago
        There is a reason that job posting is open: no one is willing to accept that job
        HarryHirsch 8y ago
        They'll find a taker, the job market in the sciences is lousy.
- ep103 8y ago
  I was speaking to the economy as a whole. Software seems to be quite a bit more labor constrained than the rest of the economy. Though honestly, once we start looking at just one industry, other effects become more prominent.
gshubert17 8y ago
> We're in a capital constrained economy. I don't understand this. Aren't there a lot of resources mostly idle, such as billions of dollars of cash balances at large corporations? Or perhaps it is easier for hedge fund managers and others in FIRE (finance, insurance, real estate) to invent and play with various derivative instruments than to do the harder work of investing for a real, tangible return that benefits people, rather than some notional, intangible ledger balance somewhere?
- ep103 8y ago
  Labor constrained vs capital constrained is a slight simplification that implies that all other things being equal, availability of capital and labor are the two things that will stop a business from growing without limit. With that in mind: A labor constrained economy implies that the capital is there to start a new business or venture, but the new business or venture cannot begin because they simply cannot hire the laborers needed to do the job (either through directly hiring, or hiring and then training). All things being equal, two businesses in direct competition, the business that manages to hire the most talent will end up growing most quickly and beat its rival. A capital constrained economy implies that labor is not a limiting factor to consider when starting your new business or venture, you will be able to find laborers as needed. Your only possible constraint is the amount of capital required to fund said business, or the amount of capital available to you to make it grow more quickly. All things being equal, two businesses in direct competition, the business that manages to get access to the most amount of funding the quickest will end up growing the most quickly, and beat its rival. By and large, most of the economy exists in the second category. That said, you're right, there are large amounts of money sitting idle both at large corporations and elsewhere. But what these individuals and organizations are doing is taking advantage of the fact that we are in a capital constrained economy. To say it another way: In an economy where the "only" thing that can prevent a new business from growing large is its availability to capital, then the most powerful actors will be the ones with the most say in how that capital is directed. We can think of it another way. If we were in a labor constrained economy, VCs as they currently exist would be far less powerful. The organizations with the most power, would be firms that had access to large numbers of skilled and waiting laborers ready to join your organization the moment they are needed.... like a union.

by ep103 8y ago

ApolloFortyNine 8y ago

There's 7.1 million open jobs in the U.S. https://www.bls.gov/news.release/jolts.nr0.htm https://www.bls.gov/news.release/jolts.nr0.htm Plus this is hackernews. Does anyone here think software isn't hiring right now?

HarryHirsch 8y ago
Meanwhile, in what's supposedly the best labour market in 50 years salaries just aren't rising. Who cares about software, software doesn't employ enough people to make an impact in the economy.
- chrisco255 8y ago
  Yes, they are: https://www.cnbc.com/2018/10/31/wages-and-salaries-jump-by-3point1percent-highest-level-in-a-decade.html https://www.cnbc.com/2018/10/31/wages-and-salaries-jump-by-3... 3.1 percent wage increase in Q3 2018. I see fast food jobs in my city for $13 an hour.
  - HarryHirsch 8y ago
    In my corner of the woods they advertised for an entry-level chemical technician, something that requires a BS in the subject, salary 30 kUSD. How you can pay on that for groceries, the rent, student loans and save for retirement is beyond me.
    - arcanus 8y ago
      There is a reason that job posting is open: no one is willing to accept that job
      - HarryHirsch 8y ago
        They'll find a taker, the job market in the sciences is lousy.
ep103 8y ago
I was speaking to the economy as a whole. Software seems to be quite a bit more labor constrained than the rest of the economy. Though honestly, once we start looking at just one industry, other effects become more prominent.

gshubert17 8y ago

> We're in a capital constrained economy. I don't understand this. Aren't there a lot of resources mostly idle, such as billions of dollars of cash balances at large corporations? Or perhaps it is easier for hedge fund managers and others in FIRE (finance, insurance, real estate) to invent and play with various derivative instruments than to do the harder work of investing for a real, tangible return that benefits people, rather than some notional, intangible ledger balance somewhere?

ep103 8y ago
Labor constrained vs capital constrained is a slight simplification that implies that all other things being equal, availability of capital and labor are the two things that will stop a business from growing without limit. With that in mind: A labor constrained economy implies that the capital is there to start a new business or venture, but the new business or venture cannot begin because they simply cannot hire the laborers needed to do the job (either through directly hiring, or hiring and then training). All things being equal, two businesses in direct competition, the business that manages to hire the most talent will end up growing most quickly and beat its rival. A capital constrained economy implies that labor is not a limiting factor to consider when starting your new business or venture, you will be able to find laborers as needed. Your only possible constraint is the amount of capital required to fund said business, or the amount of capital available to you to make it grow more quickly. All things being equal, two businesses in direct competition, the business that manages to get access to the most amount of funding the quickest will end up growing the most quickly, and beat its rival. By and large, most of the economy exists in the second category. That said, you're right, there are large amounts of money sitting idle both at large corporations and elsewhere. But what these individuals and organizations are doing is taking advantage of the fact that we are in a capital constrained economy. To say it another way: In an economy where the "only" thing that can prevent a new business from growing large is its availability to capital, then the most powerful actors will be the ones with the most say in how that capital is directed. We can think of it another way. If we were in a labor constrained economy, VCs as they currently exist would be far less powerful. The organizations with the most power, would be firms that had access to large numbers of skilled and waiting laborers ready to join your organization the moment they are needed.... like a union.