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IPFS News Link • Economy - Economics USA

An Absolutely Enormous Economic Shift Of Historic Proportions Is Now Taking Place Right In Front...

•, by Michael

Can you feel it too?  Over the past few weeks, I have heard from so many readers that are deeply troubled about economic conditions where they live.  In some cases, sales are way down.  In other cases, it seems almost impossible to find a decent job.  It is almost as if a tremendous chill descended upon the U.S. economy as the second quarter of 2024 began.  Yes, economic conditions have certainly not been good for a few years, but it appears that an absolutely enormous economic shift of historic proportions is now taking place right in front of our eyes.  Other than the early stages of the pandemic, we haven't seen anything like this since 2008 and 2009.

Let me give you an example that will illustrate what I am talking about.  A reader that lives near Seattle recently wrote me about the horrible downturn that she is witnessing in the tech industry, and she said that I could share this information with all of you…

I live in the tech corridor outside of Seattle and practically no one can find a job in tech. Apparently the costs of AI processors and servers are so expensive that large tech companies are laying off workers to accommodate for the increased infrastructure costs. I would estimate that 50 percent of the people I know in tech are unemployed including myself and my spouse. In addition they are laying off both FTEs and contractors and not backfilling the positions. The problem is exacerbated if you're over 40 because they don't want to compensate for experience. In fact experience seems to be working against people. Not to mention AI taking over roles like technical writing and marketing communications. It's getting really bad out there and the large companies play along with the media. I've met with several ex colleagues who have had their entire teams laid off and former FTEs who have had to take major pay cuts as contractors. I've also heard of more rounds of layoffs coming up. I went over to Microsoft the other morning to have coffee with an ex colleague and it's a ghost town. No one in conference rooms or offices. Maybe people are working from home but it sure felt very different.

That email resonated with me so strongly, because she is right.

Vast hordes of tech workers have already been laid off, and more will be hitting the bricks soon.

But the tech industry is supposed to be one of our economic bright spots.

If things are this bad for the tech industry, what does this say about the economy as a whole?