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Can you elaborate on the bubble bursting part? I don’t have much knowledge about how this works. If companies couldn’t afford those salaries, why would they be

• MattGaiser 5y ago
  1. Afford is a weird concept when you can go to a multi billion dollar company without ever making a profit with VC investment. A lot of tech jobs are in businesses that may not be able to make money. 2. It could lead to companies re-evaluating whether all their projects are worth it. Anecdotally, I have heard of some automation projects being cancelled as manual workers in other countries are cheaper.
  • nopenopenopeno 5y ago
    Thanks for the explanation. This makes sense.
• dudus 5y ago
  That is a very personal opinion, I have very low risk apetite when it comes to investing. And the bubble i mention is me translating that to the job market. If you look at the job market as a commodity where companies are on the buy side and workers are on the sell side you could say that the price of the commodity spiked suddenly. Whenever that happens I'm usually wary of the corrections that surely follow. That could mean mass layoffs in the future when companies realize the commodity isn't worth that much. It could mean business closings due to lack of purchase power to compete. It could mean inflation to adjust the purchase power. Again it's all speculation. And it's derived from risk tolerance. If you like risky investments it makes sense to try to capitalize and sell your labor for the most you can. I can't blame you.
  • nopenopenopeno 5y ago
    Thanks for explaining. This makes a lot of sense.