Tech, Capital and Workforce

 Peter Zeihan discusses how cheap capital and a booming stock market has led to a lot of money chasing risky projects in the tech space, specifically Silicon Valley. He notes that companies like Google, Amazon and Tesla have been able to acquire a large workforce due to the cheap cost of capital and the availability of tech-savvy millennials. However, as the cost of capital becomes more expensive, these companies are now shedding jobs, which is bad for Silicon Valley and the value proposition it provides. On the other hand, the availability of a large and experienced tech workforce, as a result of layoffs, presents an opportunity for small and medium companies to hire and implement technology advancements at a cheaper cost. Additionally, the Small Business Administration provides below market capital costs for smaller companies which could lead to an explosion of economic activity and hiring-based economic activity for smaller companies.

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