zlacker

The Capital Order lays out an argument that austerity measures are ultimately labor suppression, not necessary. Of course, that’s true of many pieces of policy wisdom: they start from an assumed good. In this case, the assumed good is the current winners should remain the winners despite, well, losing.

https://www.amazon.com/Capital-Order-Economists-Invented-Aus...

>>Dragon+(OP)
I agree that this definitely is labor suppression, but it has a real cause: the end of low interest rates and inflation. They can no longer "grow" their way into their 6 month bonuses, so they basically have to trim fat and if they all collude on doing it, it _can_ work. If they dont all collude, someone gets cheap engine for growth.

>>cyanyd+99
Also the end of full R&D expensing, which made software engineers in particular much more expensive in the US.

>>cyanyd+99
I can’t imagine anyone colluding with LBT, unless they told him it was collusion to fool him, and he fell for it.

Doing more with less is warning sign like “curve ahead”.

And the agentic focus is not forward-thinking.

Our present is to a small degree agentic, and that will increase, but that won’t sustain because (1) latency and (2) technological evolution.

It’s more likely that everyone will have their own AI on-board which will have all of the data it needs in local storage that gets regular updates. Evolving to current agentic flows won’t help with that type of processing.

>>cyanyd+99
collusion to suppress wages predates tbe raising of interest rates or inflation increases.

all the big tech companies used to have no-poach agreements to not hire from each other, such that they didnt have to compete on price

>>astran+Ae
Is the hypothesis that the next 24 months will be measurably better for software engineering jobs than the last 24 months?

>>astran+Ae
But that got rolled back in the last budget bill if i was following correctly

>>cyanyd+99
High interest rates benefit creditors and hurt debtors. These companies hold a lot of cash equivalent assets (think bonds, etc). Their balance sheets only grew. High interest rates haven't hurt these companies, but instead fattened them up. They are hoarding cash! Imagine earning high interest on that cash.

>>axus+0k
Hard to say. There's kind of a lot going on.

>>neverm+De
Erm, what?

>>axus+0k
Probably in China.

>>HumanO+KK
He’s from the future, dammit!

>>8note+Ye
That real world activity is my underlying belief, but we shouldnt ignore that the free money era ended quickly and for these execs do continue to earn their ungainly bonuses, they have to cut costs. Modern texhnology/capitalism allows them to make the same choices without directing collusion.

Best example is the rental market and the landlords all using the same price setting "algorithm"

>>chairm+ON
not if 996 is still a thing

>>astran+KJ
Either the tax treatment has an effect or it doesn't. If the market doesn't get better we can at the very least say that the whole tax thing was overstated.

>>mempko+zC
My thesis is most of these companies grow by VC funding and leveraged buyout of smaller firms. This requires cheap debt servicing.