Re:Lyft laying off 13% of staff
by frontiersummit on Thursday November 03, 2022 @02:00PM
(#33454882)
This puts it mildly. Paul Volcker has been (perhaps unfairly) called the Father of the Rustbelt, due to how rising interest rates broke the back of manufacturing in the American Midwest during the late 1970s and early 1980s. "Cooling" the economy means layoffs and plant closures, often concentrated in specific geographic regions. The only question is: what firms and employees get sacrificed to placate the inflation Gods this time around?
[ Parent
| on HN ]
Rising interest rates & a strong dollar
Ironically, you can generally have your financial house in order as a country or be globally manufacturing-competitive, but not both*.
* Exceptions Germany, Japan, et al., but as you go up the value chain you gain enough profit leeway to paper over the general rule.
Why are those countries the exception and not America?
Other countries figure it out. America cannot. Therefore, it's not possible. America!
The poster you are responding to is probably incorrect in many regards. There aren't really 'exceptions' just 'differences'.
For example, Japan's economy definitely is not feeling good at the moment, even if some particular metrics are performing at a top tier.
We should not ignore that for countries like Japan and Germany, they have an enormous advantage in not having to spend realistically on a defense budget relative to their risk-prone geography, living as they do under an umbrella.
https://data.worldbank.org/indicator/MS.MIL.XPND.GD.ZS?end=2...
https://www.washingtonpost.com/news/worldviews/wp/2015/02/19...