alt Hacker NewsI just can't get over how short and intense the period between 2021 and 2023 was. There was SO much hype, such stupendous hiring, in such a compressed timeframe. Within the span of like 9 weeks it went from full steam ahead to completely seized.
At the same time, the economy at large didn't seem to change very much.
Why did this happen?
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game_the0ry • yesterday at 7:58 PM
Near zero interest rates + COVID remote work + PPP loans = Booming economy
What 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.
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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.
The 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?