4 ms·
This will likely drive unemployment up. The retraction of capital from labor spending doesn't seem like a great thing overall, but I wonder where the money will
by darkwizard42 2y ago
This will likely drive unemployment up. The retraction of capital from labor spending doesn't seem like a great thing overall, but I wonder where the money will go (does it go instead to scalable improvements like infrastructure/cloud spend?)
- cloverich 2y agoI expect some of it is going simply to savings, or advanced allocation of materials ahead of tariffs. Some companies may simply opt to reduce spend ahead of perceived economic downturn e.g. to maintain reserves in anticipation of reduced income. But I imagine this is measurable and would be curious the extent to which this impacts the overall trends.
- bb88 2y agoSavings to Treasury Bills/Bonds, would be the mostly likely outcome. If the market is expected to do -2.5% this year (e.g. who knows really), not doing anything with your money and letting the government pay interest is often the best option. You're not expanding, sure. But you can take solace that 2% YoY is better than -10%.