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Forum commentators have predicted 100% of every collapse would be no big deal. 2008 wasn't just one thing: it was a cascade failure that progressed over the cou
by Kye 4y ago
Forum commentators have predicted 100% of every collapse would be no big deal. 2008 wasn't just one thing: it was a cascade failure that progressed over the course of months. Nobody really knew how bad it was until we were down to the wire looking at a complete collapse of the financial system. Every downturn potentially breaks something big that was built on the assumption of infinite growth and had its tendrils into too many parts of the economy.
edit to add: we already see a drying up of ad spends. What happens in an economy built on selling ads, or selling services to people who sell ads when ads sales fail to meet expectations for too long? Everyone forgets data-driven advertising is what saved tech after the crash. Public opinion is rapidly turning against that savior.
- slt2021 4y agoas long as people consume stuff, they will be shown ads
- pclmulqdq 4y agoWe're seeing historic reductions in the consumption of stuff too. A lot of people don't realize that pandemic stimulus checks in the US were being spent like extra pocket money (a lot of people bought durable goods with it), and now that there is no pretense to give out more money, consumer spending is likely to be lower than it would be without those checks.
- slt2021 4y agothings will balance out, people will consumer fewer of luxury goods, will consume more of cheaper stuff. Brands will keep spending to keep their customers, and cheaper alternatives will keep spending on ads to promote their sales. In competitive market and free economy ads are a fundamental engine that will keep economy running. Ads is sort of toll booth that takes their cut no matter what