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DragonStrength | 7 months ago

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...

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order

cyanydeez|7 months ago

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.

8note|7 months ago

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

mempko|7 months ago

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.

astrange|7 months ago

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

nevermindthegap|7 months ago

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.