> It seems like the AI revolution hit as interest rates went insane...
> ...I'm wondering if we would be having the same conversation if money for startups was thrown around (and more jobs were being created for SWEs) the way it was when interest rates were zero.
The end of free money probably has to do with why C-level types are salivating at AI tools as a cheaper potential replacement for some employees, but describing the interest rates returning to nonzero percentages as going insane is really kind of a... wild take?
The period of interest rates at or near zero was a historical anomaly [1]. And that policy clearly resulted in massive, systemic misallocation of investment at global scale.
> ...I'm wondering if we would be having the same conversation if money for startups was thrown around (and more jobs were being created for SWEs) the way it was when interest rates were zero.
The end of free money probably has to do with why C-level types are salivating at AI tools as a cheaper potential replacement for some employees, but describing the interest rates returning to nonzero percentages as going insane is really kind of a... wild take?
The period of interest rates at or near zero was a historical anomaly [1]. And that policy clearly resulted in massive, systemic misallocation of investment at global scale.
You're describing it as if that was the "normal?"
[1]: https://www.macrotrends.net/2015/fed-funds-rate-historical-c...