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To balance this, particularly your last paragraph I have the opposite viewpoint. The US government had ppp loans that were forgiven completely that effectively

To balance this, particularly your last paragraph I have the opposite viewpoint. The US government had ppp loans that were forgiven completely that effectively paid companies per employee. There was no reason not to over hire for a long period of time. We have a correction but that seems to be it. Even now the quarterly earnings statements have lines that they expect headcount to grow in future quarters (meta for example stated this bluntly in their Q3 report). So while cash flow negative startups with no future will close that's it. The market is starting to come back and this was really an understandable blip.

w4 3y ago
> To balance this, particularly your last paragraph I have the opposite viewpoint. The US government had ppp loans that were forgiven completely that effectively paid companies per employee. There was no reason not to over hire for a long period of time. PPP loans were based on 2019's average monthly payroll[1]. They did not have an effect on hiring decisions. [1] https://en.wikipedia.org/wiki/Paycheck_Protection_Program#Loan_amount https://en.wikipedia.org/wiki/Paycheck_Protection_Program#Lo...
oldpersonintx 3y ago
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pphysch 3y ago
> The US government had ppp loans that were forgiven completely that effectively paid companies per employee. The US government also has federal prosecutors actively investigating fraudulent PPP loans, so don't expect this gravy train to come round again.