2023 was the year the economics of tech caught up with reality

As a precocious teen looking to improve my college application, I sat in on a business studies class. I figured taking two extra A-Levels at night school alongside those I took during the day would make me irresistible to admissions tutors. The class I watched examined if it was worth a large factory keeping its own trucks and drivers in-house rather than outsourcing them. The data showed selling the trucks and firing the workers was more expensive in the long run, and yoked the company to the whims of any third-party logistics company in the local area. Not to mention, if you don’t own a mission-critical component of your business, you’re a lot less powerful when negotiating with your suppliers. But the teacher, and the class, all agreed it was smart to sell it all because it made a bigger profit in the quarter and was cheaper for the next two years. These people had never considered if something bad would happen, and how to prepare for it. It was at this point I realized my values were out of step with the commercial orthodoxy and opted not to take the course. I mention this because I’ve always thought the people in the tech industry with all the money are probably halfway savvy about how All Of This Is Meant To Work. I’d told myself that what, to me, appeared illogical and self-defeating was because they were playing a game of six-dimensional chess on a board I was too dim to see. Unless, of course, the economics of our industry are so unmoored from reality that... Continue reading at 'Engadget'

[ Engadget | 2023-12-18 15:30:52 UTC ]

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