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The economy is unstable, meaning we may only make 5% more profit next year. Layoffs and pay freezes will continue. There are two ways this pans out. Either big

by lumost 3y ago

The economy is unstable, meaning we may only make 5% more profit next year. Layoffs and pay freezes will continue. There are two ways this pans out. Either big tech is bloated, and wages will fall over time - or current big-techs will flounder as smaller firms out compete them. This happened to HP/IBM and others, why would Google or Microsoft be immune?

scarface74 3y ago
So where are these smaller firms and where will they get funding in the current market? In the case of MS, is a smaller firm going to overtake Windows? Azure? Office? Are the smaller firms going to win over the risk averse enterprise companies with long term contracts with Microsoft? In the case of Google, is some smaller firm going to take over Search? The massive amount of resources to run YouTube? GCP? Google Suite? ChromeOS in schools?
gigatexal 3y ago
Right. But paying people and keeping your best talent there is a business concern I thought they’d be about. Guess not. Folks will vest shares and just leave me thinks. It shows they don’t care about their people. It’s unlikely that doing even the normal raises would jeopardize the company financially. Not in the least. So… and yet Nadella gets a big raise. Why? If he’s meeting his goals it’s only because his employees helped get the company there.
throw9away6 3y ago
Wages can simply stay flat and that’s a 5% decrease due to inflation
- scarface74 3y ago
  People keep quoting this as religion. Making up numbers: If I only spend 50% of my take home and part of that 50% is going toward my fixed rate mortgage, is my spending power down by 5%?
  - taurath 3y ago
    If inflation on what you spend your money on is 10%, then yes. The price for eating out has increased 15% in a single year. Its not hyperbole. Also this assumes someone who's able to afford a mortgage
  - throw9away6 3y ago
    Yes, but your investment from the home made up some of the difference possibly depending on when you bought. That’s a different source of wealth and one not everyone has.
    - scarface74 3y ago
      Not an investment - more of an inflation hedge. Yes I realize that a primary home can be considered an investment. But that’s an often argued rabbit hole that I really don’t want to go down.
      - throw9away6 3y ago
        It’s a leveraged investment with a tax benefit and some government subsidy. Living in it is the tax Benefit portion.
        scarface74 3y ago
        It’s not really a tax benefit for most people. 87% of taxpayers take the standard deduction. That means at most 13% of taxpayers take advantage of the homeowner’s tax deduction on interest.

by lumost 3y ago

scarface74 3y ago

So where are these smaller firms and where will they get funding in the current market? In the case of MS, is a smaller firm going to overtake Windows? Azure? Office? Are the smaller firms going to win over the risk averse enterprise companies with long term contracts with Microsoft? In the case of Google, is some smaller firm going to take over Search? The massive amount of resources to run YouTube? GCP? Google Suite? ChromeOS in schools?

gigatexal 3y ago

Right. But paying people and keeping your best talent there is a business concern I thought they’d be about. Guess not. Folks will vest shares and just leave me thinks. It shows they don’t care about their people. It’s unlikely that doing even the normal raises would jeopardize the company financially. Not in the least. So… and yet Nadella gets a big raise. Why? If he’s meeting his goals it’s only because his employees helped get the company there.

throw9away6 3y ago

Wages can simply stay flat and that’s a 5% decrease due to inflation

scarface74 3y ago
People keep quoting this as religion. Making up numbers: If I only spend 50% of my take home and part of that 50% is going toward my fixed rate mortgage, is my spending power down by 5%?
- taurath 3y ago
  If inflation on what you spend your money on is 10%, then yes. The price for eating out has increased 15% in a single year. Its not hyperbole. Also this assumes someone who's able to afford a mortgage
- throw9away6 3y ago
  Yes, but your investment from the home made up some of the difference possibly depending on when you bought. That’s a different source of wealth and one not everyone has.
  - scarface74 3y ago
    Not an investment - more of an inflation hedge. Yes I realize that a primary home can be considered an investment. But that’s an often argued rabbit hole that I really don’t want to go down.
    - throw9away6 3y ago
      It’s a leveraged investment with a tax benefit and some government subsidy. Living in it is the tax Benefit portion.
      - scarface74 3y ago
        It’s not really a tax benefit for most people. 87% of taxpayers take the standard deduction. That means at most 13% of taxpayers take advantage of the homeowner’s tax deduction on interest.