3 ms·

"we see correlation is causation and you can’t argue otherwise:" Right. Because none of us remember what was going on in the world at the time.

bumby 2y ago
Can you explain further? I assumed you were talking about COVID, but the decline in jobs lags a few years behind so I'm not sure I'm tracking your point.
- idiotlogical 2y ago
  The inflation from the covid money-fountain came back to bite well after the pandemic. Central Bank sets the rates higher to purposefully chill the economy by triggering a recession, or ideally recession-lite. Making people unemployed is a key goal
  - bumby 2y ago
    >Making people unemployed is a key goal Considering one of the main goals of the central bank is to maximize employment, this perspective might be extending into unfounded conspiracy territory.
    - chubs 2y ago
      Perhaps they're prioritising preventing hyperinflation, and willing to break eggs (layoffs) for that inflation-under-control omelette. Either way, it's all not much fun right now :(
      - bumby 2y ago
        I tend to think the rise in unemployment in tech is a regression to the mean. We’ve just gotten lulled into think the best of times is the norm.
deelowe 2y ago
Tech is a high growth sector, perhaps the highest. Because of this, tech companies are highly leveraged. They need cash to fund the growth and this cash won't result in revenue for some time, so they have to borrow the money. When rates go up, this cash becomes expensive. The last thing these companies want to do is cancel their growth plans and hand over the market to their competitor, so they look for areas to reduce costs. The single most effective way to do this is to the various recurring expenses associated with headcount. Yes, covid is a factor and yes so is the shift from general purpose compute to specialized/high performance, but the single largest factor is the fed rate and what this has done to the money supply (as it is designed to do).
ajkjk 2y ago
I think that line is a joke.

bumby 2y ago

Can you explain further? I assumed you were talking about COVID, but the decline in jobs lags a few years behind so I'm not sure I'm tracking your point.

idiotlogical 2y ago
The inflation from the covid money-fountain came back to bite well after the pandemic. Central Bank sets the rates higher to purposefully chill the economy by triggering a recession, or ideally recession-lite. Making people unemployed is a key goal
- bumby 2y ago
  >Making people unemployed is a key goal Considering one of the main goals of the central bank is to maximize employment, this perspective might be extending into unfounded conspiracy territory.
  - chubs 2y ago
    Perhaps they're prioritising preventing hyperinflation, and willing to break eggs (layoffs) for that inflation-under-control omelette. Either way, it's all not much fun right now :(
    - bumby 2y ago
      I tend to think the rise in unemployment in tech is a regression to the mean. We’ve just gotten lulled into think the best of times is the norm.

deelowe 2y ago

Tech is a high growth sector, perhaps the highest. Because of this, tech companies are highly leveraged. They need cash to fund the growth and this cash won't result in revenue for some time, so they have to borrow the money. When rates go up, this cash becomes expensive. The last thing these companies want to do is cancel their growth plans and hand over the market to their competitor, so they look for areas to reduce costs. The single most effective way to do this is to the various recurring expenses associated with headcount. Yes, covid is a factor and yes so is the shift from general purpose compute to specialized/high performance, but the single largest factor is the fed rate and what this has done to the money supply (as it is designed to do).

ajkjk 2y ago

I think that line is a joke.