Re:Tech bubbles are bursting all over the place
by MomoXenosaga on Friday May 13, 2022 @02:42PM
(#31371136)
Is it really a bad thing? Unemployment is pretty low.
Re:Tech bubbles are bursting all over the place
by throw_nbvc1234 on Friday May 13, 2022 @03:06PM
(#31371398)
Labor Force participation is also low. Job openings are around an all time high.
https://fred.stlouisfed.org/series/CIVPART https://fred.stlouisfed.org/series/JTSJOL
As these two converge, wages are probably going to go down while inflation may still be high.
Re:Tech bubbles are bursting all over the place
by colechristensen on Friday May 13, 2022 @02:59PM
(#31371324)
Long term, poor allocation of resources into junk work and business that doesn’t make money leads to crashes and periods of high unemployment.
In other words you can’t keep the party going forever and how things are now isn’t an excuse for irresponsibility.
Re:Tech bubbles are bursting all over the place
by imtringued on Friday May 13, 2022 @07:34PM
(#31373650)
That is illogical. Money-less economic models are unable to predict structural unemployment. In fact Say's law predicts that a theoretical barter economy is always at full employment.
Of course the modeling flaw is that money is saved as a goal in itself so it will cease to circulate at some point which is the real source of unemployment.
Inflation and a return to nonzero interest means capital gets to retreat to safer ground, pulling the rug out of stupid unprofitable startups that can only make money with head-in-the-clouds IPO valuation or FAANG acquisition.