Economics/Class Relations

Tech, Capital and the Workforce

By Peter Zeihan on December 5, 2022

When the economy is booming and capital is cheap, big tech is the place to be. They can hire everyone and their mother (and pay them well), take on risky long-term projects (like EVs @ Tesla) and see their stock prices soar thanks to their “transformational” and “world-changing” technologies.

But what happens when that capital dries up? Well, as we are starting to see, workforces get cut by 15 – 20% and those long-term projects get sidelined for projects that actually have an end in sight. But it’s not all bad.

Just because big tech companies are feeling the heat doesn’t mean everyone will feel it simultaneously. For some, like non-tech companies, it can even be an opportunity to grow their workforce and tackle those projects they haven’t been able to touch for the past 10+ years.

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