Near zero interest rates + COVID remote work + PPP loans = Booming economy
replyWhat is happening now is the unwinding of the above. Now its:
Higher rates + AI + too many SWEs (bootcamps and over-hiring) = Busting economy
I think what we are in right now is more the norm and the post covid boom was an exception.
And also the section 174 change too, which suddenly increased the tax bill for any companies doing software development.
replyThat has been undone now, though.
replySection 174 as it stands means R&D costs companies less, not more. It would be bullish for the SWE profession. It’s still around
replyHas it? I haven’t seen anything about that.
replyI thought it was mostly rolled back for domestic R&D as part of the terribly named OBBBA.
reply[1]: found a ref https://www.bnncpa.com/resources/one-big-beautiful-bill-act-...
What was actually booming in though, like why did we suddenly need so many more tech workers? It didn't make much sense to me at the time so I am not particularly surprised by a correction.
replyThe big AI companies don't really have high head counts, and the boom started somewhere before AI got taken seriously.
Was it just that there was access to cheap money thanks to covid era cash rates during that time?