Business Maverick: Tech is going through a midlife crisis, but that doesn’t mean you shouldn’t

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Is a midlife crisis a real thing, or just a thing we think is a thing? The key identifier of a midlife crisis is the slightly balding guy in a convertible sports car.

But you know, correlation is not causation. Most people can only afford sports cars when they get to middle age. The fact that middle-aged men drive sports cars could easily be explained because they have wanted to drive them their entire lives but can only afford them in their 40s.

There is a discussion going on in the ether at the moment about whether the tech industry is going through a midlife crisis, or whether what is happening is more existential. Unemployment around the world has not increased by large numbers, but every major tech company has announced huge layoffs, including Amazon and Meta. Most tech companies have lost close to half their value.

And yet, Thompson concludes, this might not be all about the desperate search for lost youth. In fact, it has a lot more to do with interest rates. The period after the great recession has been defined by low interest rates, a consequence of low aggregate demands. “This created the perfect conditions for an era of endless cash that venture capitalists, seeking high rates of return, poured into low-marginal-cost software companies.

 

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He could take the lead in the sequel to 'Silence of the Lambs' when they do one !!!

I thought that it might be the guy in the piss pot helmet taking his Harley out for a Sunday morning breakfast run.

He’s not slightly balding. He had hair implants. His hair is fine.

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