US is starting to see heavy job losses in roles exposed to AI

In retrospect look at the graveyard filled with projects - this is a reflection of over hiring and poor project selection.

Looking through the list of those professions, I would bet that nearly half of them won't even exist anymore except for some extremely niche cases. Paralegals, translators, credit authorizers, many types of secretaries - AI can basically do nearly all the work for many of these occupations.

But in any case the primary source mentions tech: https://www.bls.gov/opub/mlr/2024/article/industry-and-occup...

IMO, rather than hiring more people than necessary, we should have a safety-net so that our society isn’t structured around “work or die.” I bet we’d see much lower admin costs at that point, as people aren’t incentivized to find less-essential tasks.

The solution may be to modify the incentives. Maybe federally cap all salaries to 90k or so, to filter out the serial job-hoppers and con-artists, and to also prevent poaching and "nerd-hoarding"[3]. Has the additional benefit of forcing rents and property prices to go down, and stops gentrification in its tracks (I mean I would expect this to be partially true, though it might force people to instead seek massive loans to compensate -- which should also be capped by salary to prevent it). And since we are already talking about federal limits, maybe a federal guarantee that covers healthcare and housing would further improve things.

[1]: This depends on context. If the IP is already open source, then there is no laundering. But I know people who have been building the same software system for the last 3 employers, and they do it (ostensibly) from scratch each time (but in fact they are permuting/improving the old version -- which does not actually belong to them -- and are over-reporting how much time they spent working on it). My point here is not that employees are ruthless rogues, but rather that the incentives are set up in a way that encourages the rapid dilution of the value of IP (it is effectively non-exclusive, which makes industrial espionage _unnecessary_), and discourages any kind of mutual responsibility between employer and employee (in a different knowledge-work field, I hear from a friend, seniors give juniors only minimal training because they do not expect to have to deal with them in two years -- and this was true since at least 2017, and has only gotten more true since 2020).

[2]: With or without LLMs, the biggest winners of this dynamic are the quasi-monopolies (or, more precisely oligopolies and duopolies), like MSFT, GOOG, META, etc. Everyone else will lose, and if they happen to win, they will get acquired (not for the tech, which is probably slop anyway and cannot run at hyperscales, but for the clients/customers/users -- why else would MSFT buy LinkedIn and GitHub, why else would startup incubators like YC be such a huge success (I doubt YC would have been possible in the 70s or 80s)). Software is awesome, and I love it, but the software _industry_ has always been an operation designed to extract money and data from the populace, using deceptive and predatory practices (see: Uber, Theranos, Celsius, Alameda for outright fraud, and Oracle for mere deception and plunder).

[3]: Sorry, could not think of a better term. The idea is basically the corporate equivalent of nerd-sniping, but instead of sniping by offering interesting problems/puzzles, you snipe by offering large paychecks and golden handcuffs.

Wow, I really hope that you're just too young to remember when Google famously invested in tons of "let's see what happens" projects. Google X projects is still a thing: https://x.company/projects/. And important things like Waymo came out of these Google moonshot projects.

Still, I think your comment also just shows how much Google has changed in the past 15 years. A lot of those projects on that x.company website are dead, and of course Google is also famous for killing projects that don't become huge, even if they're useful to lots of people.

Imo what I've seen happen is it's just empire building. Say you're a billionaire CEO and you have a bunch of money to spend on accomplishing some business goal. To deploy that much money, you need layers of management. Every time you introduce a new layer, that layer will have its own incentives and spin off its own narratives to benefit themselves while simultaneously giving the opposite impression to leadership.

This is probably just a natural byproduct of sufficiently large organizations. The same way the middle layers of the network stack tend to consolidate (e.g. TCP), there's some invisible hand of incentives which makes this inevitable

I think from my perspective at least, claude code / codex + improved information retrieval capabilities is good enough. The rest of the handwavey billionaire bullshit is just noise to me. I think it's wrong to sour on the technology, better to sour on the rich assholes who want to taint it with their personal agenda

It did under Biden as well yet nobody had any issues claiming the economy was in terrible shape and that we were entering a potential recession. Which frankly I agreed with! The stock market tells a fraction of the story. Especially because institutional investors now dominate investment in a way they didn’t only a few decades ago. A booming stock market does not benefit “the common man” like it once did unless one believes in trickle down economics or something. Employee pensions have become rare in the private sector, matched 401(k)s used for investment are also becoming more scarce. The stock market just isn’t tied to “the average person” like it once was, relatively speaking.

I do think Biden deserves immense blame for inflation getting out of control, but I also think as usual people overlooked what the Democrat president was handed, which was a Covid economy in this case. There was going to be fallout from that for years no matter what he did. No one blames Trump for the economy he handed off either.

You are describing stagflation, that is a kind of recession. Despite all the fundamentals pointing towards it for a while, the US hasn't seen a lot of inflation (at least yet), so that's not what is happening.

Hardly. Those 'invented things' are invented for one purpose, to make the inventor money. That's how capitalism works.

Fun fact, let's say that tomorrow, all new credit was outlawed. And by law, all existing credit would require payments that took 3 years to pay off. In this fantasy world where we ignore mortgages, my point is that salaries would diminish.

Right now, the cost of everything a person buys is factored into salary costs. Take away interest, and all those 30% interest credit card debts would eventually no longer be part of your salary. This process takes years of course, but no one would issue credit cards, if every person defaulted on them, yet if you look at where salaries really go? With a lot of people, 30%+ goes to just holding debt.

Although the stock market isn't a reflection of the economy, the most relevant concern is the staggering 40TN+ of debt that can't ever go down as long as the dollar is the reserve currency and have no choice but to endlessly supply more dollars.

The issue with oil rising will make it completely impossible for the Federal Reserve to cut any rates and instead will either hold or raise them.

Then the stock market will have a problem; and those that have properties tied to their RSUs will start panicking.

[0] https://www.macrotrends.net/1378/dow-to-gold-ratio-100-year-...

Unless you happen to have a media empire at your disposal. Maybe then you can change the future. The problem is that those people are changing things for the worse.

Especially when it's actually "services sales jobs a little up, manufacturing a little down"...

Also, supply chain shortages will continue to impact us - they are not even beginning to reach our shores.

I suspect the economy would look very different if total headcount in a manager's org was the denominator in a manager's performance review, such that if you employ 10x as many people, you better have generated 10x as much profit. But this would also have lots of unintended consequences: management would be incentivized to employ as few people as possible, which means lots of people would be out of work and would be competing with your firm.

they probably do, it's just a matter of incentives, i.e. "It is difficult to get a man to understand something, when his salary depends upon his not understanding it"

maybe companies try to fix this with PIP quotas or something, but then this gets taken and perverted by the managers to where it has the opposite purpose and the highest rating goes to whoever helps build the empire the fastest

Problem is though that nobody is really buying that narrative anymore.

No executive will ever want to say they made poor decisions that resulted in overhiring.

Instead, someone else's fault.

The same way for awhile the failings of certain businesses "those damn millennials refusing to spend money here" instead of "we priced ourselves out of the market".