4 ms·

> How is that not collective bargaining against tech talent? Well you see, there are these things called interest rates which effect the cost of borrowing. An

by stale2002 3y ago

> How is that not collective bargaining against tech talent? Well you see, there are these things called interest rates which effect the cost of borrowing. And when those interest rates go up massively, like they did, this causes a completely predictable effect of it being more expensive to borrow and spend money. And this has economy wide effects, that are what bog standard macro economics predicts.

ath3nd 3y ago
You know who caused raised the raised interest rates? The same megacorps that borrowed and overhired like insane during the pandemic to boost their stock price, now scream bloody hell and cut major portion of the people they just hired during the pandemic. That also boosted their stock price.Oh, and it allowed them to crank up their pricing models to the max, again boosting their stock price. I'd argue that it's the megacorps and their greed that are the major cause of the inflation that we experience recently worldwide. https://www.theguardian.com/commentisfree/2022/sep/25/inflation-price-controls-robert-reich https://www.theguardian.com/commentisfree/2022/sep/25/inflat... And please, stop using "macroeconomic factors" as an excuse for bad management (who made them overhire during the pandemic), greed, and lack of vision. When a CEO makes 300 times the salary of their median employee (https://www.wsj.com/business/auto-ceos-make-about-300-times-what-their-median-worker-is-paid-heres-how-that-stacks-up-cefc9a5 https://www.wsj.com/business/auto-ceos-make-about-300-times-...), the best way for the company to save money is to fire their C-suite for the "leadership" that brought it to be influenced by "bad economic headwinds" in the first place. Stop defending corporations, what they do is inexcusable, amoral, and probably, some day, and with some scrutiny, illegal.
- stale2002 3y ago
  > You know who caused raised the raised interest rates? Oh yeah. That would be the organization that is in charge of deciding what the rates are. Which would be the federal reserve. They quite literally decide what the rate is. > "macroeconomic factors" Do you not know how interest rates and borrowing costs work? It's pretty standard econ 101 stuff, about how interest rates effect the economy and effect hiring and firing rates. You can read it in an economics textbook. Here, it is pretty standard stuff: https://en.wikipedia.org/wiki/Phillips_curve https://en.wikipedia.org/wiki/Phillips_curve Its called the Phillips curve.
  - ath3nd 3y ago
    [flagged]
    - stale2002 3y ago
      The information is there for you to lookup. The Philips Curve is a well studied topic in mainstream economics. So my only theory is that you haven't studied the topic much. It's ok. Most people don't actually study econ 101. It's not too hard to pick though, and these basic topics are all covered!
      - ath3nd 3y ago
        First of all, the Phillips curve, really? That's a flawed boomer way to correlate inflation and employment percentage. Tell me you are like 3000 years old and out of touch with economy and the world as a whole without telling me. It's not related at all to my argument. My point is the megacorps (especially in the energy sector) are one of the major causes of the current surge of inflation, regardless of borrowing, (un)employment or other macroeconomic factors. Below is some reading for you in an accessible format for your level of comprehension. https://www.cnbc.com/2023/12/08/excess-profits-of-big-firms-have-driven-up-inflation-report-claims.html https://www.cnbc.com/2023/12/08/excess-profits-of-big-firms-... https://www.theguardian.com/business/2023/jun/27/corporate-profits-driving-up-prices-ecb-president-christine-lagarde https://www.theguardian.com/business/2023/jun/27/corporate-p... https://www.theguardian.com/business/2022/apr/27/inflation-corporate-america-increased-prices-profits https://www.theguardian.com/business/2022/apr/27/inflation-c... https://www.epi.org/blog/corporate-profits-have-contributed-disproportionately-to-inflation-how-should-policymakers-respond/ https://www.epi.org/blog/corporate-profits-have-contributed-... It's okay, you don't have to be well informed yourself if there are well informed people like me who can compile you some material to read in language understandable to you.
        stale2002 3y ago
        > First of all, the Phillips curve, really? That's a flawed boomer way to correlate inflation and employment Economics 101 always starts from the basics. It is indeed the case that all things about the economy can get more complicated. But, when starting out from the beginning, it is important to learn the baseline foundations before moving on to more complicated special cases. Kind of like how in physics they start you off with frictionless, spherical cows. The same way of learning applies to economics as well. Also, if is important to note how wildly different your statements are from what you were saying at the beginning. If you agree that companies aren't just all deciding together to have layoffs at once, and it is instead a complicated result of interest rates (feel free to say it is the result of the models that come after the Philips Curve!), then I am glad to have moved you on your position.
jkestner 3y ago
That doesn't jibe with reality. Tech companies are making record profits at the same time they're laying off workers by the thousands. Companies have been using "macroeconomic" conditions as an excuse for increased prices and job cuts, but it doesn't hold up to the most basic scrutiny. Their profits have been increasing far beyond inflation. Whether it's FAANG or Big Egg[2], the fix is in. Anyway, good on Fastmail employees. Makes this customer feel better about the company sticking to its principles. 1. https://www.allrecipes.com/new-ruling-in-egg-lawsuit-finds-egg-producers-guilty-of-price-fixing-8410645 https://www.allrecipes.com/new-ruling-in-egg-lawsuit-finds-e...
- stale2002 3y ago
  > Tech companies are making record profits This has nothing to do with interest rates and I didn't make any comments about profits. Here is a good overview about how interests rates are related to unemployment rates. https://en.wikipedia.org/wiki/Phillips_curve https://en.wikipedia.org/wiki/Phillips_curve
  - ath3nd 3y ago
    Are you saying that when interest rates are high, a company making record profits HAS to engage in price increases, wage freezing and layoffs, to satisfy a made up instrument explaining basic economy? This is is like companies' belief that all employees are always on the bell curve, so the bottom x% has to get culled each year. Anything to fit in the stats, right? I am actually inclined to believe that C level do think like that. This is both sad and terrifying, and also the reason why we need strong unions in the first place, so we don't end up merely a statistic on some boomer economy cultist's spreadsheet.

ath3nd 3y ago

You know who caused raised the raised interest rates? The same megacorps that borrowed and overhired like insane during the pandemic to boost their stock price, now scream bloody hell and cut major portion of the people they just hired during the pandemic. That also boosted their stock price.Oh, and it allowed them to crank up their pricing models to the max, again boosting their stock price. I'd argue that it's the megacorps and their greed that are the major cause of the inflation that we experience recently worldwide. https://www.theguardian.com/commentisfree/2022/sep/25/inflation-price-controls-robert-reich https://www.theguardian.com/commentisfree/2022/sep/25/inflat... And please, stop using "macroeconomic factors" as an excuse for bad management (who made them overhire during the pandemic), greed, and lack of vision. When a CEO makes 300 times the salary of their median employee (https://www.wsj.com/business/auto-ceos-make-about-300-times-what-their-median-worker-is-paid-heres-how-that-stacks-up-cefc9a5 https://www.wsj.com/business/auto-ceos-make-about-300-times-...), the best way for the company to save money is to fire their C-suite for the "leadership" that brought it to be influenced by "bad economic headwinds" in the first place. Stop defending corporations, what they do is inexcusable, amoral, and probably, some day, and with some scrutiny, illegal.

stale2002 3y ago
> You know who caused raised the raised interest rates? Oh yeah. That would be the organization that is in charge of deciding what the rates are. Which would be the federal reserve. They quite literally decide what the rate is. > "macroeconomic factors" Do you not know how interest rates and borrowing costs work? It's pretty standard econ 101 stuff, about how interest rates effect the economy and effect hiring and firing rates. You can read it in an economics textbook. Here, it is pretty standard stuff: https://en.wikipedia.org/wiki/Phillips_curve https://en.wikipedia.org/wiki/Phillips_curve Its called the Phillips curve.
- ath3nd 3y ago
  [flagged]
  - stale2002 3y ago
    The information is there for you to lookup. The Philips Curve is a well studied topic in mainstream economics. So my only theory is that you haven't studied the topic much. It's ok. Most people don't actually study econ 101. It's not too hard to pick though, and these basic topics are all covered!
    - ath3nd 3y ago
      First of all, the Phillips curve, really? That's a flawed boomer way to correlate inflation and employment percentage. Tell me you are like 3000 years old and out of touch with economy and the world as a whole without telling me. It's not related at all to my argument. My point is the megacorps (especially in the energy sector) are one of the major causes of the current surge of inflation, regardless of borrowing, (un)employment or other macroeconomic factors. Below is some reading for you in an accessible format for your level of comprehension. https://www.cnbc.com/2023/12/08/excess-profits-of-big-firms-have-driven-up-inflation-report-claims.html https://www.cnbc.com/2023/12/08/excess-profits-of-big-firms-... https://www.theguardian.com/business/2023/jun/27/corporate-profits-driving-up-prices-ecb-president-christine-lagarde https://www.theguardian.com/business/2023/jun/27/corporate-p... https://www.theguardian.com/business/2022/apr/27/inflation-corporate-america-increased-prices-profits https://www.theguardian.com/business/2022/apr/27/inflation-c... https://www.epi.org/blog/corporate-profits-have-contributed-disproportionately-to-inflation-how-should-policymakers-respond/ https://www.epi.org/blog/corporate-profits-have-contributed-... It's okay, you don't have to be well informed yourself if there are well informed people like me who can compile you some material to read in language understandable to you.
      - stale2002 3y ago
        > First of all, the Phillips curve, really? That's a flawed boomer way to correlate inflation and employment Economics 101 always starts from the basics. It is indeed the case that all things about the economy can get more complicated. But, when starting out from the beginning, it is important to learn the baseline foundations before moving on to more complicated special cases. Kind of like how in physics they start you off with frictionless, spherical cows. The same way of learning applies to economics as well. Also, if is important to note how wildly different your statements are from what you were saying at the beginning. If you agree that companies aren't just all deciding together to have layoffs at once, and it is instead a complicated result of interest rates (feel free to say it is the result of the models that come after the Philips Curve!), then I am glad to have moved you on your position.

jkestner 3y ago

That doesn't jibe with reality. Tech companies are making record profits at the same time they're laying off workers by the thousands. Companies have been using "macroeconomic" conditions as an excuse for increased prices and job cuts, but it doesn't hold up to the most basic scrutiny. Their profits have been increasing far beyond inflation. Whether it's FAANG or Big Egg[2], the fix is in. Anyway, good on Fastmail employees. Makes this customer feel better about the company sticking to its principles. 1. https://www.allrecipes.com/new-ruling-in-egg-lawsuit-finds-egg-producers-guilty-of-price-fixing-8410645 https://www.allrecipes.com/new-ruling-in-egg-lawsuit-finds-e...

stale2002 3y ago
> Tech companies are making record profits This has nothing to do with interest rates and I didn't make any comments about profits. Here is a good overview about how interests rates are related to unemployment rates. https://en.wikipedia.org/wiki/Phillips_curve https://en.wikipedia.org/wiki/Phillips_curve
- ath3nd 3y ago
  Are you saying that when interest rates are high, a company making record profits HAS to engage in price increases, wage freezing and layoffs, to satisfy a made up instrument explaining basic economy? This is is like companies' belief that all employees are always on the bell curve, so the bottom x% has to get culled each year. Anything to fit in the stats, right? I am actually inclined to believe that C level do think like that. This is both sad and terrifying, and also the reason why we need strong unions in the first place, so we don't end up merely a statistic on some boomer economy cultist's spreadsheet.