alt Hacker NewsThe fundamental problem is the asymmetry of value creation. Software is perhaps the pinnacle of this, and why tech companies are so unfathomably wealthy.
A team of 10 SWEs can create a product worth $1B with the cost of 10 laptops. You get ten people worth $100M each.
To create $1B in value with any kind of manufacturing business, is going to take hundreds of people utilizing millions in various costs. You end up with something like 10,000 people worth $100k each once you wind your way through all those supply lines.
You said it better. I think the idea is that certain "paper" economies are disproportionately valued in the economy when the dollar is strong. A strong dollar leads to offshoring manufacturing, which leads to an over weighted "paper" economy, which leads to an eroding middle class.