This is a good article, I think a lot of people really don't realize just how bizarre current "business models" are, especially in the tech/internet sector. I've had lots of conversations with...
This is a good article, I think a lot of people really don't realize just how bizarre current "business models" are, especially in the tech/internet sector. I've had lots of conversations with people (usually related to Tildes and why I'm doing it as a non-profit, avoiding investors, etc.) where I tell them that almost no tech companies actually make a profit, and they're shocked. I think everyone just assumes that since the companies are still in business, they must be making money, otherwise it just doesn't make sense, right?
Uber especially tends to be one that surprises people, because a lot of people know that it's a big, incredibly successful tech company, and can't believe that (like the article says) they lost $4.5 billion last year. I enjoyed Steve Yegge's post from a few months back where he noted that they were "losing money faster than any company has lost money in the history of money."
One thing about economic doomsayers is that while they're almost always wrong about when a crisis will occur, they usually are fairly solid at identifying the key vulnerabilities that will...
One thing about economic doomsayers is that while they're almost always wrong about when a crisis will occur, they usually are fairly solid at identifying the key vulnerabilities that will exacerbate a crisis years ahead of time.
We know that, for instance:
The Fed has not yet been able to completely undo all the emergency interest rate drops and Keynesian crisis-mode money-making, leaving the government's last line of emergency lending with fewer tools to address an economic crisis.
The national government just passed a budget that increases the deficit with little intention of paying for the tax breaks it is offering citizens in an economic boon. This can potentially increase the size of whatever bubble people are throwing their savings into for investments.
Investments are a huge tool of saving for retirement, which has only grown more popular in the past two decades as distrust with Social Security's long-term sustainability increases.
The entire tech industry is flooded with unprofitable businesses that are neither sustainable nor likely to break through their profitability problems before the money runs out (hi, reddit).
Banks continue to be "too big to fail," even as current financial regulation does require them to be appropriately leveraged against their investments (for now).
The exact contours of what sparks this looming garbage fire has yet to happen, thank god. But we seem to keep stacking flammable objects on this pile.
This is a good article, I think a lot of people really don't realize just how bizarre current "business models" are, especially in the tech/internet sector. I've had lots of conversations with people (usually related to Tildes and why I'm doing it as a non-profit, avoiding investors, etc.) where I tell them that almost no tech companies actually make a profit, and they're shocked. I think everyone just assumes that since the companies are still in business, they must be making money, otherwise it just doesn't make sense, right?
Uber especially tends to be one that surprises people, because a lot of people know that it's a big, incredibly successful tech company, and can't believe that (like the article says) they lost $4.5 billion last year. I enjoyed Steve Yegge's post from a few months back where he noted that they were "losing money faster than any company has lost money in the history of money."
One thing about economic doomsayers is that while they're almost always wrong about when a crisis will occur, they usually are fairly solid at identifying the key vulnerabilities that will exacerbate a crisis years ahead of time.
We know that, for instance:
The exact contours of what sparks this looming garbage fire has yet to happen, thank god. But we seem to keep stacking flammable objects on this pile.