[HN Gopher] 'Big Short' investor says white-collar jobs bubble i...
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       'Big Short' investor says white-collar jobs bubble is 'bursting'
        
       Author : type4
       Score  : 113 points
       Date   : 2022-09-30 18:28 UTC (4 hours ago)
        
 (HTM) web link (seekingalpha.com)
 (TXT) w3m dump (seekingalpha.com)
        
       | mt_ wrote:
       | If anyone has read "Bullshit Jobs", will know those jobs were
       | created and why they aren't going anywhere anytime soon.
        
       | metadat wrote:
       | Michael Burry has been claiming the sky is falling for more than
       | a year now. In my eyes he is no longer credible. Broken clock and
       | all that.
       | 
       | At this point, the entire globe has fallen in uncharted economic
       | territory. Anyone projecting certainty about what the future
       | holds is a fool, liar, or both.
        
         | cush wrote:
         | That's what created all of the conflict in the movie. Wait till
         | the end
        
         | ForHackernews wrote:
         | > At this point, the entire globe has fallen in uncharted
         | economic territory.
         | 
         | Howso? We're back in a more historically normal interest rate
         | environment. The last 12 years of zero-interest rates were the
         | "uncharted" territory IMO.
        
         | theknocker wrote:
        
         | boppo1 wrote:
         | Well the Brits just implemented Yield Curve Control, so I'd say
         | the sky is at least drooping.
        
           | nemo44x wrote:
           | And they're just ahead of the pack.
           | 
           | Printer is coming, heh.
           | 
           | We should come to terms with the fact that central banks
           | simply can't raise us out of inflation in short order. It
           | disrupts too much and will cascade. Not to mention
           | politicians implementing policy that directly hinders their
           | efforts.
        
         | encoderer wrote:
         | More than a decade.
        
           | metadat wrote:
           | Thanks for the correction; I only noticed his nonsense in my
           | news feeds since the past year or so.
           | 
           | He was right once a long time ago. Now he's just a charlatan
           | continually desperately trying to capitalize on that one
           | dusty old win.
        
         | polski-g wrote:
         | More than a year? And the stock market dropped 20% in the last
         | year?
         | 
         | Seems a bit credible.
        
         | opportune wrote:
         | Burry was right though? His prediction was that we were in an
         | easy-money fueled asset bubble and we are indeed like 20% down
         | off ATH in the total market, more in tech.
         | 
         | The prediction is based on really simple macro too. Nothing is
         | certain except death and timing a bubble pop/price correction
         | is notoriously hard, especially when it's based on discrete
         | decisions by the Fed to raise interest rates/stop expanding the
         | balance sheet. But it's been clear for quite some time that the
         | Fed would have to stop that eventually as stopping inflation
         | became more important than stimulating the economy.
         | 
         | I'd much sooner call the people who thought the loose monetary
         | and fiscal policy of the 2010s (and especially during COVID)
         | was a permanent fixture the fools.
        
         | vlovich123 wrote:
         | From his Wikipedia page:
         | 
         | > Through his analysis of mortgage lending practices in 2003
         | and 2004, he correctly predicted that the real estate bubble
         | would collapse as early as 2007. His research on the values of
         | residential real estate convinced him that subprime mortgages,
         | especially those with "teaser" rates, and the bonds based on
         | these mortgages, would begin losing value when the original
         | rates were replaced by much higher rates, often in as little as
         | two years after initiation. This conclusion led him to short
         | the market by persuading Goldman Sachs and other investment
         | firms to sell him credit default swaps against subprime deals
         | he saw as vulnerable.[14][15][16]
         | 
         | That's the challenge with predictions. If you're off by a day,
         | you'd still be perceived as being right. If the predicted
         | magnitude was 5% off you'd still be perceived as being right.
         | There's no hard and fast rule as far as I can tell about how
         | off you can be and still be considered "right".
        
         | grey-area wrote:
         | He's correct.
         | 
         | The bubble caused by a decade of easy money started to burst
         | last year.
         | 
         | Go look at a stock chart from the last 1Y and you'll see that
         | the sky has started to fall, and had been falling from just
         | after 1Y and has a long long way to go.
         | 
         | Until inflation is under control and fed tightening stops,
         | housing, equities, and bonds will continue to fall in price.
         | This week almost saw a catastrophic run on the pound and UK
         | gilts and US bonds are flashing warning signs.
         | 
         | The crash started last year and continues with mathematical
         | certainty until the fed pivots.
        
           | mancerayder wrote:
           | > housing
           | 
           | That one is a mixed bag. There are clearly areas where it is
           | falling - SF, Austin, Boise, a few regions like W Florida...
           | but there are regions where it simply is not (the northeast
           | in particular).
           | 
           | I'd love for that to fall. And let's not talk about rents.
        
           | behaveEc0n00 wrote:
           | Essentially the government is setting market values through
           | mathematical indirection the general public cannot grasp.
           | 
           | https://news.ycombinator.com/item?id=33031466
           | 
           | Basically, fu Main Street, got mine. I wonder if they believe
           | the meta-awareness the internet has provided will just go
           | away if they crash tech/social media? That's where all the
           | progressive undesirables work, after all.
           | 
           | Past pols convinced people "trickle down" was sincere
           | economics, not a bawdy joke. That Reaganomic funneling of
           | wealth to the top was for their own good, and the public now
           | blames modern progressives. A pols dedication to double speak
           | is commendable.
        
             | atdrummond wrote:
             | Supply side economics has taken more people out of poverty
             | than any kind of ISI or other internally focused
             | development programmes. (I'll also note I'm a far left
             | person who believes there are many flaws with the global
             | economic system but the raw facts don't lie. Also, I've
             | been poor and destitute unlike the majority of HN posters
             | and understand how desultory and ineffective the majority
             | of social programmes truly are - and this isn't just an
             | American perspective, as I've lived in nearly a dozen
             | countries.)
             | 
             | https://www.weforum.org/agenda/2015/06/can-free-trade-
             | bring-... https://www.weforum.org/agenda/2019/03/poverty-
             | reduction-res... https://www.flexport.com/blog/does-trade-
             | reduce-poverty-an-a...
             | https://www.piie.com/bookstore/trade-policy-and-global-
             | pover...
        
               | ElevenLathe wrote:
               | Generally I agree that liberal-ish do-goodery
               | interventions are basically hokum, but in the good old
               | days when there was a real socialist project in the form
               | of the Soviet Union, left economics also pulled huge
               | numbers of people out of poverty. The Bolshevik program
               | of "socialism in one country" turned the leftovers of the
               | Tsarist empire, mainly a mass of peasants who had _in
               | living memory_ been serfs, into an industrialized
               | powerhouse with a quite high standard of living.
               | 
               | I'm not a tankie or Stalin apologist but it shows what is
               | possible within a planned economy.
        
           | RC_ITR wrote:
           | > and has a long long way to go.
           | 
           | The stock market's price level is well above where it was
           | pre-pandemic, it's trading at earnings multiples in-line with
           | 30+ year averages [1] (what was the 10Y yield in 1990, might
           | I ask?) because earnings have gone up.
           | 
           | I know being doom and gloom makes you sound smart (to some),
           | but don't fall into the trap of 'everything is shit now
           | because inflation has been high for 20 months'
           | 
           | [1]https://www.yardeni.com/pub/stockmktperatio.pdf
        
             | bequanna wrote:
             | > The stock market's price level is well above where it was
             | pre-pandemic
             | 
             | Nope. Only a few percent above and trending sharply
             | downward:
             | 
             | https://finviz.com/futures_charts.ashx?t=ES&p=w1
        
             | mikeweiss wrote:
             | Do you really believe these sky high earnings are going to
             | continue?
             | 
             | And what about all the companies that still have billion
             | dollar market caps but have NEGATIVE earnings? (Atlassian,
             | Snowflake, Uber, Crowdstrike, Shopify.... the list goes on)
             | 
             | Folks we are in a tightening cycle in order to fight
             | inflation. It's feels important to remind everyone that
             | economic conditions like this have not happened in decades.
             | This site (hackernews) has pretty much entirely existed in
             | the era of cheap money and low interest rates.
             | 
             | Keep your head in the sand at your own peril.
             | 
             | Companies are tightening their belts and you should too.
        
               | mancerayder wrote:
               | > Keep your head in the sand at your own peril.
               | 
               | Where do you propose to store wealth if it is all coming
               | down?
        
               | nemo44x wrote:
               | Wealth? You want fixed rate debt right now if it's all
               | collapsing and we have a decade of unstoppable inflation
               | upon us.
        
               | RC_ITR wrote:
               | >And what about all the companies that still have billion
               | dollar market caps but have NEGATIVE earnings?
               | (Atlassian, Snowflake, Uber, Crowdstrike, Shopify.... the
               | list goes on)
               | 
               | I think they are an extremely small part of the $100tn
               | global stock market that people here _love_ talking about
               | because they work there.
               | 
               | >Folks we are in a tightening cycle in order to fight
               | inflation.
               | 
               | My point was that we are at multiples in-line with 1990,
               | ya know when we had 8% 10Y yields.
               | 
               | Folks, call the end of the world at your own peril.
        
               | metadat wrote:
               | Spot on.
               | 
               | Additionally, if the entire world stock market is $100tn,
               | the US is sitting pretty, because at $49tn the US stock
               | markets represent HALF of _the entire world stock
               | market_.
        
             | opportune wrote:
             | Earnings and P/E in isolation are not good indicators. They
             | should be at least discounted against the "risk-free" rate
             | of return, which if you haven't noticed is high relative to
             | the past two decades with further increases to come.
             | 
             | What a needlessly condescending reply
        
               | atdrummond wrote:
               | I would imagine most HN posters have never done a DCF
               | analysis in their lives but I know plenty of people who
               | have which have never beat the market. Not sure I buy any
               | model other than Graham-Dodd's these days.
        
               | opportune wrote:
               | Sure, that's probably a better model. I don't see
               | anything wrong with it and it has more parameters.
               | 
               | I just think P/E by itself is way too oversimplified and
               | a pretty garbage metric when used in aggregate +
               | historically due to things like interest rates,
               | sector/business model skew, relative maturity of
               | companies, etc also fluctuating over time. It's like
               | Week1 of value investing 101, not an actual metric by
               | which you'd want to engage in value investing or
               | historical analysis.
        
             | grey-area wrote:
             | Yes, that's why it has far more to go to revert to the mean
             | of earnings and price. Earnings are also artificially
             | inflated, and will drift down, and stock prices with them,
             | we're just seeing the beginning of that process.
             | 
             | Here's someone else who called it over a year ago with some
             | charts with counterpoint those you link:
             | 
             | https://www.hussmanfunds.com/comment/mc220925/
             | 
             | OR CAPE: https://www.multpl.com/shiller-pe
             | 
             | Note he's in good company, with Jeremy Grantham for example
             | also warning of the same thing:
             | 
             | https://www.livewiremarkets.com/wires/grantham-this-is-a-
             | bub...
             | 
             | Just to be clear, the argument is not 'everything is shit
             | now because inflation', it is that the era of easy money
             | has ended, significant inflation and war means a regime
             | change in central bank intervention, and central banks will
             | now tighten till things break. They haven't even managed to
             | unwind QE yet and stop buying their own debt, will they
             | ever? If they do, watch out.
             | 
             | This isn't doom and gloom, it's simple realism about the
             | regime change in interest rates - the era of 0% money is
             | gone, in its place we have a normalisation, which means a
             | normalisation of frothy asset prices and a reversion to the
             | mean of earnings and prices in many domains. Usually these
             | things take a year or two to work out, it won't be a fast
             | process.
        
               | RC_ITR wrote:
               | > Earnings are also artificially inflated, and will drift
               | down
               | 
               | Citation needed. Maybe we are enter a local minimum, but
               | what, you think off-stock-market value is not going to be
               | brought onto the stock market?
               | 
               | I think you should try to raise a private capital fund
               | and roll-up as many mom and pop retailers as you can,
               | then.
        
               | portlander52232 wrote:
               | How are earnings artificially inflated?
        
               | RC_ITR wrote:
               | It's a common trope for people who don't like the fact
               | that the stock market is trading at normal-ish P/E levels
               | to say 'well the E is fake!!! Just wait until the E
               | normalizes!'
               | 
               | Usually, they cite things like artificially low input
               | costs (hard to argue that today), unsustainable demand
               | from customers due to 'cheap money' (haven't seen
               | evidence of that yet, the opposite actually), and a
               | general disdain for advertising and retail business
               | models (despite their long-term durability).
        
               | sokoloff wrote:
               | I agree with most of what you wrote, but I think it
               | misses that, in an era of 0% money, growth matters more
               | than current profits and so firms rationally trade off
               | the latter in pursuit of the former.
               | 
               | When that changes, I think you'll see earnings rise as
               | chasing growth now carries a higher cost.
        
           | metadat wrote:
           | Is it a bubble or a crash when not accompanied by a huge wave
           | of abrupt layoffs and / or market losses? From where I'm
           | sitting, the current phenomena appear slow moving and
           | unfolding over such a long period of time, it's easily
           | observable and unsurprising.
           | 
           | Maybe we just have a different definition of these terms?
        
             | grey-area wrote:
             | Layoffs have started and will accelerate.
             | 
             | It starts as hiring freezes and funding drying up, it ends
             | in mass layoffs.
             | 
             | In a year or two the crash will be obvious, everyone will
             | be certain investing is a terrible idea, and it'll be a
             | great time to invest/start a company.
        
               | CodeSgt wrote:
               | Why would that be a great time to start a company?
        
               | grey-area wrote:
               | Because by the time you're ready for serious investment
               | the cycle will have turned again. Many great companies
               | are founded in downturns (possibly just because people
               | are laid off, possibly because money stops being a
               | motivating factor).
        
               | yunwal wrote:
               | Less competition for talent and market share if you have
               | the funds. However, if you don't have the funds, it'll be
               | nearly impossible to raise.
        
               | metadat wrote:
               | Thanks for elaborating.
               | 
               | It's still a great time to found a company now, if you
               | have the right idea and network ;)
        
               | mikeweiss wrote:
               | It'll be a good time to start a company when people no
               | longer want to invest?
        
               | ambicapter wrote:
               | Not all companies need huge investment, and it's a good
               | time to start a company when a lot of companies are dead
               | or dying, and you can step into their market and buy
               | their assets for cheap.
        
               | Ancalagon wrote:
               | sure, with what capital to hire/acquire? Investors will
               | shut down as well
        
               | RC_ITR wrote:
               | Facebook is not the economy
               | 
               | https://www.dol.gov/ui/data.pdf
        
       | impalallama wrote:
       | I've been reading headlines like this for over a decade now. I
       | wonder when it will finally happen.
       | 
       | Also interesting use of the word bubble considering it involves
       | an unprecedented change in how our economy has functioned for the
       | past 3/4 of a century.
       | 
       | "The car dependent American suburb bubble is bursting"
        
         | burlesona wrote:
         | Funny you say this because the car dependent American suburb is
         | also showing signs of stress:
         | 
         | https://m.youtube.com/watch?v=7IsMeKl-Sv0
        
       | [deleted]
        
       | seydor wrote:
       | Isn't his job white-collar? It would be prudent for him to buy
       | some cattle. Did he actually buy any?
        
         | PKop wrote:
         | "'The Big Short' Michael Burry Buys Farmland Hand Over Fist"
         | 
         | https://seekingalpha.com/article/4537751-the-big-short-micha...
        
           | seydor wrote:
           | Good for him. But where's the cattle?
        
       | xani_ wrote:
       | That reads like "We wish to start paying our devs like our
       | cleaning staff to get more profits"
        
         | chinabot wrote:
         | Based on the quality of most of the recent programs and apps I
         | have seen the cleaners could probably do a better job.
        
       | gabyar wrote:
       | Burry is a hedge fund manager. The most important part of his job
       | is to scare people away from the S&P and entice them to put money
       | into his fund.
       | 
       | It's generally a mistake to trust the financial advice of any
       | hedge fund manager, and they usually provide advice that makes
       | the S&P seem like a bad bet.
        
         | missedthecue wrote:
         | Scion Asset Management isn't open to clients.
        
           | echelon wrote:
           | The more widely his narrative is believed, the more money he
           | makes. He's not behaving selflessly here.
        
         | readme wrote:
         | I think he only invests for himself now. According to wikipedia
         | he closed scion capital in 08. What's his fund now?
        
       | streetcat1 wrote:
       | Not correct. Boomers are retiring and with them their experience.
       | 
       | Gen Z are much smaller than Boomers. This is a structural issue
       | that can be fixed only via immigration.
       | 
       | What could have been automated probably was automated.
       | 
       | Also, due to china failures, there is going to be boom of
       | insourcing not outsourcing.
        
         | tcbawo wrote:
         | I'm not disagreeing with your premise about Boomers. The
         | youngest Baby Boomers (birth year 1946-1964) are in their late
         | 50s, although the oldest have been retirement age for 10 years.
         | It's likely that many had postponed retirement, but health and
         | economic issues have forced them into retirement. On a
         | tangential note, everybody always forgets Gen X. Or, maybe
         | 'Boomer' has become a term for 'someone older than a young
         | adult'?
        
           | mutt2016 wrote:
           | Every single time I hear millennial I think avocado toast.
           | And every time I hear boomer I think of strong perfume.
           | 
           | The words meaning sure hadn't changed, but I imagine the
           | longer its mainstream the more it will morph. Soon we won't
           | be allowed to say it at all, lest we offend somebody with the
           | slur.
        
             | glouwbug wrote:
             | It's a generational thing. Just like Gen-Z hates the
             | boomers for exploiting real estate the children of Gen-Z
             | will complain their UBI pays too little because millennials
             | exploited massive tech salaries to automate away burger
             | flipping joints and software development
        
           | teeray wrote:
           | > health and economic issues have forced them into retirement
           | 
           | For many too, they held on because their job was _fun_. My
           | neighbor was a shipping container captain... he was eligible
           | for retirement for many years. What finally made him retire
           | was all the rigamarole the pandemic introduced. It stopped
           | being fun.
           | 
           | The same thing happened with a local family-owned
           | Agricultural store near me that's been around for 70-odd
           | years. Dealing with everything in the past 2 years sucked all
           | the joy out of running the store, so they decided to retire.
        
         | madcadmium wrote:
         | You're saying that we've reached peak automation?
        
         | syntaxing wrote:
         | Curious to what "Gen Z are much smaller than Boomers" is in
         | reference to. Population size or literally physically? (Which
         | neither is true from what I can tell?)
        
           | aliqot wrote:
           | There's no way it is physically. Boomers were born during the
           | baby boom which was a time of scarcity after WW2. Gen Z is
           | the physically largest generation of humans we've produced so
           | far.
           | 
           | There was a time Nigella Lawson was considered husky enough
           | to elicit gasps from the baby boomer generation when she was
           | on TV. I watched one of her old episodes recently and it all
           | came back to me, and by today's standards she just likes like
           | anybody else, even at her heaviest.
        
         | zeroonetwothree wrote:
         | The four most recent generations all have around 70m people
         | currently (depending on exact years of cutoff). So this is
         | simply false.
        
       | encoderer wrote:
       | There is a strange cast of right-once hangers-on from a decade
       | ago like burry that people love to quote in headlines. Nate
       | silver is another example.
       | 
       | Why are these people so interesting to bloggers/journalists?
        
         | pohl wrote:
         | Not a Nate Silver fan, here, but I don't think the "right once"
         | sentiment about him captures his record accurately. What really
         | happened is that millions of people who have an underdeveloped
         | understanding of what it means for a lower-probability event to
         | happen in a single trial are telling on themselves whenever
         | they refer to him as having been "wrong". I mean, if you play
         | only one round of russian roulette -- but you lose -- it's not
         | really a surprise, is it. There are only six chambers.
        
           | bena wrote:
           | Yeah, Silver simply tells us the odds. Someone did the
           | analysis on it at one point and 538 was "right" at about the
           | rate of their percentages.
           | 
           | i.e. For all the times they called an event 65%, it happened
           | about 65% of the time.
           | 
           | So they weren't "wrong" the other 35% of the time, it's just
           | those are the times the 35% chance bore out.
           | 
           | People have a habit of assuming "is likely" is the same as
           | "guaranteed". Or that that's what the caller believe will
           | happen. And then using the event once passed to discredit the
           | initial analysis.
        
             | mabbo wrote:
             | This is exactly why the 2016 election was interesting.
             | Silver called it about 33% chance Trump would win. And then
             | he did, and people said "AHA! You were WRONG!"
             | 
             | But he gave Trump a higher probability of winning than just
             | about anyone, other than Trump himself. One of Silver's
             | detractors, Sam Wang, even said it was so impossible Trump
             | would win that he'd eat a bug if he got more than 240
             | electoral votes. (he chose a gourmet cricket
             | https://www.politico.com/story/2016/11/sam-wang-poll-
             | expert-...)
        
               | yamtaddle wrote:
               | > This is exactly why the 2016 election was interesting.
               | Silver called it about 33% chance Trump would win. And
               | then he did, and people said "AHA! You were WRONG!"
               | 
               | What was funny about that one was he also got a bunch of
               | "LOL no way you lunatic, he can't possibly have that
               | large a chance and no-one else is saying so, so you're
               | dumb, or maybe you're secretly a pro-Trump shill".
               | 
               | Caught it going both ways.
        
               | greesil wrote:
               | Nate and team do modeling well. Fat tails, correlated
               | populations, and they deal with the crap datasets they
               | get from pollsters. I always tune into his podcast when
               | an election rolls around.
        
             | oneoff786 wrote:
             | That "someone" includes 538 themselves. They're very
             | transparent about their track record and methodology.
        
         | mbesto wrote:
         | Simple - they get clicks.
         | 
         | Pop culture knows the movie 'Big Short', but they probably have
         | never heard of a Nobel prized economist.
        
           | dominotw wrote:
           | > but they probably have never heard of a Nobel prized
           | economist.
           | 
           | I think paul krugman is an pop culture figure too.
        
             | atdrummond wrote:
             | Probably for all the wrong reasons. He was pretty widely
             | mocked at LSE when I attended there a decade ago and that's
             | an institution I'd expect him to still be well regarded at.
             | He traded his academic bonafides years ago.
        
           | Dracophoenix wrote:
           | Milton Friedman had a television show on PBS in the 1980s.
           | It's not as though economists don't sell well on television.
        
             | Gibbon1 wrote:
             | Paul Krugman writes a column in the New York Times.
        
               | anm89 wrote:
               | Paul Krugman is under qualified to write about economics
               | for a hishschool newspaper.
        
             | rchaud wrote:
             | That was the 1980s and it was PBS, one of the biggest of
             | the few major channels on American airwaves. It wouldn't
             | work today because economists cannot boil down complex
             | ideas into 15 second videos.
        
             | [deleted]
        
         | chasd00 wrote:
         | people know the names (or movie name in this case) and clicking
         | on a familiar name is probably more likely than a name no one
         | has ever ever heard about.
        
           | cmsj wrote:
           | there's also something inherently compelling about the
           | outsider who gets something more right than the experts.
        
         | theknocker wrote:
        
         | RC_ITR wrote:
         | It's cover for the increasing editorialization of 'news.'
         | 
         | Reporter wants to say something about 'I bet WFH will have
         | negative impacts on white collar workers."
         | 
         | Their options are:
         | 
         | 1) Do data-driven research and come up with a dry, sort-of-
         | compelling article about recent data releases that doesn't get
         | traction
         | 
         | 2) Use a 'famous for being right in a big way' celebrity to
         | 'launder' their idea.
        
         | trenning wrote:
         | Does Nassim Nicholas Taleb qualify under this umbrella?
         | 
         | I don't see talked about as much these days, curious what the
         | sentiment is on him now?
         | 
         | (I really enjoyed his books)
        
         | mrwww wrote:
         | There was a movie etc, and people know his name, and how hw
         | knew about the crash, when nobody else did. So it attracts
         | clicks because people want to know this time.
         | Bloggers/journalists are interested in clicks.
        
         | arbuge wrote:
         | Burry was actually just right again, and in a major way.
         | 
         | He predicted the market would crash this year, and liquidated
         | most of his portfolio in the first half of the year to get out
         | of harm's way. Most of the rest of us are now nursing massive
         | losses.
         | 
         | https://markets.businessinsider.com/news/stocks/big-short-mi...
        
         | Sakos wrote:
         | I don't really understand why people are so obsessed with Nate
         | Silver (particularly negatively). I listen to the 538 podcast
         | and I'm interested in what he has to say about polling (and the
         | discussions are _always_ interesting, even if I don 't always
         | agree with them), but that's about it. I also listen to dozens
         | of other podcasts where they talk about other things they know
         | a lot about. It's also not like Nate is the word of god on
         | polling. He's just another source of information. You can take
         | or leave it. It doesn't matter. But why complain about him?
        
         | rchaud wrote:
         | We may live in an irreligious society, but humanity's innate
         | desire to anoint prophets to warn us of a coming reckoning
         | continues unabated.
        
         | weeksie wrote:
         | Generally I agree with you, but Nate Silver has yet to perform
         | poorly.
        
         | grey-area wrote:
         | How about right 4 times, is that enough for you?
         | 
         | https://www.livewiremarkets.com/wires/grantham-this-is-a-bub...
        
           | ac29 wrote:
           | Grantham is a notorious perma-bear, and given that article
           | was posted right before a 20% rise in the market, I'm
           | inclined to say that's another wrong call for him.
        
       | DeadMouseFive wrote:
       | Really solid reasoning and we should listen to Burry.
       | 
       | WFH will reduce middle management and "prestige" employees as
       | more efficient workflows evolve from the old "filing cabinets and
       | typewriters" methods that some companies are still using to this
       | day.
       | 
       | Automation is coming, and it is definitely coming for the white
       | collar workers who act as human CRUD apps.
       | 
       | The ability to collate, search, and analyze data used to require
       | labor power, it does not anymore.
       | 
       | I watch my partner's experience in accounting and the difference
       | are stark.
       | 
       | There are many many bs steps in accounting with paper that
       | disappear when digital tools are used.
       | 
       | Having physical pieces of paper as a fungible business tool is
       | still something used by a lot of firms but they are simply behind
       | the times, there are relatively simple software solutions for
       | most paperwork needs and this reduces labor power required.
       | 
       | "We've always done it this way" is an excuse for firms that will
       | fall behind other digitally empowered firms.
       | 
       | What does this mean for investors? Don't invest in companies that
       | insist on using filing cabinets.
        
         | whatshisface wrote:
         | There is a lot of room for further development in accounting
         | that is not presently happening because so many people are
         | required to file all the lunch receipts. Shortsighted business
         | might fire their staff when they find out how to buy an OCR
         | system but it would be wiser to explore what you can do with
         | people who can collect and collate complex business data with
         | great reliability.
        
         | vsareto wrote:
         | > white collar workers who act as human CRUD apps
         | 
         | Nah, I've seen legacy code and how much maintenance it
         | requires. Regular devs are safe.
        
         | mc32 wrote:
         | But then they counterbalance this with the introduction of
         | efficiency sapping regulations and compliance which adds little
         | benefit but lots of overhead/headcount. Let's look at
         | University Administration... instead of automation REDUCING
         | administrative headcount, it has gone UP!!
        
         | SoftTalker wrote:
         | I work for an organization where all the accounting is digital,
         | has been for decades. Yet every miscellaneous expense
         | reimbursement requires a receipt. That physical receipt has to
         | be submitted with an expense report. The physical receipt is
         | then scanned when the expense report is processed, but it is
         | also filed and has to be kept for 7 years, subject to audit.
         | 
         | It's the most ridiculous thing I've ever seen, so it must
         | either be a legal requirement or maybe the organization had a
         | really bad experience with expense fraud and is now paranoid.
        
           | cjbgkagh wrote:
           | They probably find that they save money by making the process
           | so onerous that more people don't bother to file expense
           | reports.
        
             | MandieD wrote:
             | I see that you have also identified the central value
             | proposition of Concur.
        
         | Emma_Goldman wrote:
         | I don't really find this convincing. Companies have been
         | transitioning from paper for 20 years, and most have superseded
         | it. WFH is hardly a step change.
        
         | bko wrote:
         | I've never been convinced that efficiency and automation would
         | result in fewer jobs.
         | 
         | Imagine an economy where there were no ATMs. Any time you
         | wanted cash, you would have to walk to the bank and wait in
         | line to talk to a bank teller and cash a check. And every week
         | you'd be paid by a check. Paper records were collected for
         | everything and an army of employees had to reconcile the
         | records. No spreadsheet software was available.
         | 
         | In fact, the number of bank tellers (not even bank employees)
         | actually doubled since the advent of ATMS:
         | 
         | > The number of human bank tellers in the United States
         | increased from approximately 300,000 in 1970 to approximately
         | 600,000 in 2010. Counter-intuitively, a contributing factor may
         | be the introduction of automated teller machines. ATMs let a
         | branch operate with fewer tellers, making it cheaper for banks
         | to open more branches. This likely resulted in more tellers
         | being hired to handle non-automated tasks, but further
         | automation and online banking may reverse this increase.
         | 
         | But somehow today more people work at banks than in the past,
         | even accounting for population growth. Why would CRUD apps that
         | make some stuff more efficient change this?
         | 
         | https://en.wikipedia.org/wiki/Automated_teller_machine
        
           | mixmastamyk wrote:
           | Banks in the US are not a good example because they are
           | several decades behind the rest of the world. I haven't
           | stepped purposely into a bank except to open an account, in
           | about twenty years.
           | 
           | Fednow should alleviate some of this.
        
             | atdrummond wrote:
             | Fednow will be great for most domestic transfers but I
             | still expect any international ones to require either a
             | third party service (Wise, Xoom, etc) or a call/visit to
             | the bank.
        
               | ElevenLathe wrote:
               | Will Fednow not interoperate with SWIFT?
        
           | akiselev wrote:
           | _> But somehow today more people work at banks than in the
           | past, even accounting for population growth. Why would CRUD
           | apps that make some stuff more efficient change this?_
           | 
           | Population growth doesn't account for regulatory changes and
           | it takes a while to automate anything that interfaces with
           | the law because of the inherent risk in getting it wrong.
           | Banks are acutely exposed to this because they're often the
           | ones who are ultimately responsible - they're the default
           | insurance policy against counterparty risk.
        
             | bko wrote:
             | Sure, that makes sense when talking about employee count in
             | aggregate. But specifically the number of bank tellers has
             | doubled. Surely bank tellers should have more tools at
             | their disposal to be more efficient, and surely fewer
             | people would use bank tellers with things like ATMs and
             | online banking. But somehow we have more bank tellers.
        
               | akiselev wrote:
               | Tellers could have gotten twice as efficient and still
               | double in size if the number of transactions requiring
               | human intervention increased four-fold, especially if the
               | move to online banking has driven an increase in fraud
               | and user error. It's a number that scales with regulatory
               | demands, transaction count, total volume, and so on - not
               | number of active users.
               | 
               | Edit: Tellers also tend to be general purpose account
               | managers at smaller banks, so if you called up the bank
               | you'd eventually get forwarded to someone on the floor at
               | your local branch instead of a call center.
        
               | [deleted]
        
           | 60secs wrote:
           | The only reason I have interacted with a bank teller for the
           | past 2 decades is to get quarters.
           | 
           | If I could get quarters form an ATM, there would be no reason
           | ever for me to.
           | 
           | What are people using tellers for?
        
             | freedude wrote:
             | For everything other than $100, $20, & $5 I use a teller.
             | Translates to I use a teller every week or 2. Why? because
             | in many parts of this world cash is still king. Get out of
             | the city for a change. Bring Cash.
        
             | maxerickson wrote:
             | My credit union is located near the route I take home from
             | work on not very busy. So I use tellers for everything
             | other than withdrawing cash.
        
             | rightbyte wrote:
             | > What are people using tellers for?
             | 
             | They need to look you in the eyes to see if you are pure of
             | heart and deserve a mortage.
        
             | atdrummond wrote:
             | How do you do a wire transfer from an atm? Even with a
             | private banker I still have to call someone to move money
             | above X amount - I can't do everything through a web
             | portal. Maybe my bank just sucks, though.
        
             | pirate787 wrote:
             | Large counter deposits, cashier's checks. And my parents go
             | in the bank to socialize with the tellers
        
             | kylehotchkiss wrote:
             | Cashiers Checks!
        
           | oneoff786 wrote:
           | Automation does not remove jobs. It simplifies them, and
           | makes them lower skill and thus lower wage jobs. A bank
           | teller today is a terrible job making terrible wages. It has
           | basically no career trajectory. There may be more of them,
           | but they're not the same job at all.
           | 
           | The number of tellers is expected to drop by 12% over the
           | next decade while general jobs are expected to grow by 5%
           | according to government forecasts btw.
           | 
           | Being a cashier used to be a tougher job because you needed
           | to know all the inventory. Now it's ok for a grocery store
           | cashier to not know what parsley is.
           | 
           | If automation makes it practical to do an embarrassingly
           | small task in order to provide a value to someone richer,
           | yeah, you can be hired into it. Maybe a lot of people will.
           | But that's not prosperity that's capitalism holding you by
           | the balls.
        
             | sokoloff wrote:
             | This reads to me that only being capable of doing an
             | embarrassingly small task is the problem. If that's your
             | ability, you'd prefer a world where that's possible to one
             | where the minimum floor for ability is higher than your
             | own.
        
           | babypuncher wrote:
           | The invention of things like saddles and carriages only made
           | horses more and more valuable over the years, until
           | automobiles became a more practical replacement.
           | 
           | I think it is hubris to say that anything a human can do
           | cannot eventually be replaced by a machine. When we will
           | actually reach that point is the real question.
        
           | WalterBright wrote:
           | > I've never been convinced that efficiency and automation
           | would result in fewer jobs.
           | 
           | It hasn't in 250 years of automation.
        
           | ac29 wrote:
           | > But somehow today more people work at banks than in the
           | past, even accounting for population growth.
           | 
           | Perhaps that's not quite the right comparison - even though
           | the population hasnt doubled since 1970, the number of people
           | employed has (80M->160M, approx [0]). Adjusting for that,
           | Bank Teller employment level is basically unchanged.
           | 
           | [0] https://fred.stlouisfed.org/series/CE16OV
        
           | hindsightbias wrote:
           | That's because the banks took their 2008 bailouts and built a
           | million branches.
           | 
           | All those branches closed during covid. I have 6 within
           | walking distance and there isn't a human anywhere.
        
             | echelon wrote:
             | And yet they're still building new branches left and right!
             | 
             | I count half a dozen Chase branches that have gone up near
             | me in the past few months. I don't get it.
        
               | zmmmmm wrote:
               | Probably because they've ascertained that one of the key
               | things customers look for in selecting a bank is whether
               | there is a branch near them. Never mind if there is
               | literally anything in there other than an ATM ...
        
           | spaceman_2020 wrote:
           | All these people theorizing the end of work have never
           | actually worked in a large company, and don't understand the
           | motivations of people making hiring decisions.
           | 
           | The larger a company gets, the more careerists it attracts.
           | For careerists, "number of people managed" is a key
           | performance indicator (and a boardroom/resume bragging
           | right).
           | 
           | The human motivations of decision makers - to advance their
           | own careers by being the manager that manages _more_ people -
           | is completely misaligned with these future efficiency
           | hypotheses
           | 
           | As long as that remains true, we will continue to see bloat
           | and companies hiring way more people than they need.
        
             | throw868788 wrote:
             | I see that in places I've worked. I've always resisted
             | growing my team's headcount as I've seen it break
             | efficiency first hand. However I'm well aware it makes our
             | team less noticed, and less attractive when other companies
             | ask what's my current reporting count as a metric of how
             | senior you are.
        
             | bushbaba wrote:
             | To go from Sr. Manager to Director requires having
             | experiencing managing managers who report to you. How do
             | you get more middle managers? You hire more people.
             | 
             | How do you go from Sr. Manager to Manager, you manage a
             | large team, and create a need to have your org have
             | multiple managers.
             | 
             | So yes, lots of perverse incentives to grow your org so-as
             | to grow your career.
        
             | bko wrote:
             | Right, so more efficiencies could free up resources to hire
             | even more middle managers or administrative staff. It's
             | only natural that well funded startups will have roles for
             | "experience coordinator" or something. You think FAANG
             | would have such a large headcount if they didn't have crazy
             | margins?
             | 
             | There are some other tides working in the favor of bloated
             | salaries and payrolls. One is the focus of "stakeholder
             | capitalism". Most of the large companies are held by ETFs.
             | The large banks that run the ETFs are less concerned about
             | individual efficiencies of any one company (they own them
             | all anyway), but are more interested in other things (green
             | initiatives, social causes, etc). So the decisions being
             | made at these companies are less about profit and more
             | about servicing "stakeholders", be it their employees, the
             | community, the environment. That's all fine, but it's
             | difficult to track and hold executives responsible. A
             | bloated staff is fine because you don't want to lay off
             | employees. Or various money losing departments are okay
             | because they're servicing the community.
        
         | [deleted]
        
         | curiousllama wrote:
         | I used to work in process automation. So you're aware, the
         | reason human CRUD apps exist is to handle edge cases & changing
         | context. Often, it takes more time/money to adequately describe
         | the human process than it does to just do it.
         | 
         | You can see this principle with ERP implementations - they can
         | literally bankrupt an entire company if you get too ambitious
         | with what can be automated.
         | 
         | Edge cases & changing business context aren't going away.
        
           | freedude wrote:
           | Bingo! The business I work for specializes in and caters to
           | edge cases. It is why we are profitable and we let the big
           | boys do all of the big easy jobs that aren't as profitable.
        
         | dangus wrote:
         | I really disagree. The past 20 years have shown us that
         | automation is the main driver of white collar job growth.
         | 
         | There are very few industries that haven't already digitized,
         | the ones you mentioned that have human CRUD apps are relatively
         | rare. Accounting, law, healthcare...who else? Basically nobody.
         | 
         | How many new companies exist now because of automation?
         | 
         | Sure, there are some prestige managers out there, but I think
         | their prevalence is overstated. Most managers I know in tech
         | companies are overworked and have no time on their schedule.
        
         | meltyness wrote:
         | This is almost certainly the line of reasoning that lead to
         | COBOL, and yet here we are with guilds and corporations that
         | still need management to relate to the present and future of
         | their trade's procedures and environment to the real world.
        
         | yamtaddle wrote:
         | > Automation is coming, and it is definitely coming for the
         | white collar workers who act as human CRUD apps.
         | 
         | I know some people who do this kind of work in various
         | organizations.
         | 
         | As far as I (and they) can tell it all should have been
         | automated down to 1/10 or less the staff it takes now _decades_
         | ago with computers, but their orgs keep getting basically
         | scammed by vendors promising the moon and delivering a
         | mimeograph of a smeared Xerox of a bad photo of the moon, so it
         | never happens--there 's constant tool churn, but nothing ever
         | gets faster or better. Anyone internal smart enough to automate
         | any of it themselves either quietly does it some for them and
         | their buddies so they can slack more, or does none at all and
         | tells no-one what they're capable of because it'll just mean
         | more work and management'll probably fuck it up anyway, if not
         | be angry about it.
         | 
         | It's a leadership failure and it seems to be more common than
         | not. Maybe we'll reach a tipping point where such orgs simply
         | die from that kind of thing, but it really seems like we ought
         | to have by now considering how much "low hanging fruit" that
         | couldn't been tackled in the 80s is still around.
        
           | zmmmmm wrote:
           | Hilarious example: our org decided to "optimise" travel
           | expenses by mandating all our bookings through a centralised
           | travel service. The service offers a corporate portal that
           | allows orgs to specify their policy and ensure compliance
           | while letting employees "self-serve" to book travel.
           | 
           | Unfortunately the software is so bad and so complex that upon
           | deployment, they realised they couldn't just roll this out
           | for direct access to staff. It is full of travel-industry
           | terminology nobody understands combined with corporate org
           | policy terminology few understand.
           | 
           | So they designated specific staff as "travel managers" who
           | would be the ones to book travel for their group. These
           | people then get special training etc. In practices however
           | none of the managers have time for this so we are all
           | delegating it to admin staff that already do other admin type
           | work for our teams.
           | 
           | And so the whole exercise has brought us full circle to where
           | dedicated staff are effectively manually booking travel for
           | us. And of course then COVID hit so nobody traveled for 2
           | years after that and we all prefer remote / zoom as much as
           | possible anyway.
        
             | theGnuMe wrote:
             | We have that and it is still cheaper to book outside of it
             | sometimes by many hundreds of $$$
        
         | JumpCrisscross wrote:
         | > _WFH will reduce middle management and "prestige" employees
         | as more efficient workflows evolve_
         | 
         | It also removes geographic limiters that drive up the cost of
         | certain pools of labour.
        
           | itake wrote:
           | timezone and holiday differences are a huge cost at my job.
           | Communication windows easily delay projects 1-14 days.
        
       | ravedave5 wrote:
       | Riiiiight..... just let me know when I can easily find good devs.
        
         | ogogmad wrote:
         | I think he's talking about administration type jobs, or
         | something.
        
         | feoren wrote:
         | > just let me know when I can easily find good devs
         | 
         | As a good dev looking for a job, I can tell you with 95%
         | certainty that the good devs are not applying to your job
         | because your company is a boring knockoff doing boring things
         | and your job sounds like a boring dead-end where developers
         | will be cordoned off into a little box with nary enough room to
         | turn around while they implement mandates handed down from
         | above by a product owner who never uses the actual product with
         | no opportunity for actually discussing whether this new silly
         | feature will make the product worse or not (it will) while
         | technical debt and cruft accumulates and any attempt to invest
         | in the long-term health of your product will result in a
         | reprimand.
         | 
         | After months of looking at job postings, hiring managers
         | complaining about not finding good devs just sounds like incels
         | complaining about not being able to date hot women. Look
         | inward. Lots of good devs are out there looking. They're just
         | not looking at _you_.
        
           | acidburnNSA wrote:
           | What could I say to convince people that this is not the
           | case? Like I have a small team trying to revolutionize
           | nuclear power deployment performance with a highly customized
           | PLM app but on paper it just seems to sound boring.
        
             | ambicapter wrote:
             | How in the blazes do you manage to make nuclear power sound
             | boring?
        
             | feoren wrote:
             | Obviously I don't know your specific case, but I can offer
             | a few ideas:
             | 
             | > trying to revolutionize
             | 
             | There are a lot of aspirational companies out there. I'd
             | rather work at an aspirational company than one with no
             | vision at all, but you still need to convince me that
             | there's an actual chance you can deliver on this vision. If
             | you told me you were going to revolutionize the world's
             | energy sector with a perpetual motion machine, I'm
             | obviously passing. Treat me like an investor -- convince me
             | your company has a future. Because, of course, I am an
             | investor; I'm considering investing a large percentage of
             | my professional life in your company.
             | 
             | > nuclear power deployment performance
             | 
             | Nuclear power is interesting but highly regulated. If I
             | come up with new and interesting ideas that contribute to
             | this space, is it too tightly constrained by regulation to
             | have any chance those ideas could get applied? Will I be in
             | a position where anyone will actually listen to my ideas,
             | or have you already made up your mind about how everything
             | is going to work? Am I going to get to talk about the
             | product development, or is this going to be handed down to
             | me with people taking offense if I try to explain why that
             | latest change doesn't make sense with the rest of the
             | application?
             | 
             | And what is "deployment performance" -- trying to cut the
             | costs involved in building and deploying new nuclear power
             | plants? If it is, just _say that_. Don 't make me guess
             | what your company actually does, because I'm going to guess
             | using my priors, and as you probably guessed from my other
             | comment, my priors are very negative.
             | 
             | > a highly customized PLM app
             | 
             | Two red flags here: "highly customized" -- I'm a software
             | developer. I write code (among many other things, of
             | course). What does "customized" mean? Are you building this
             | in some other inner platform? "Customized" sounds much
             | weaker than just plain new code. Will I find Apex code
             | built on SharePoint or something awful like that?
             | "Customized" is a huge red-flag word for me because it's
             | almost exclusively used by people who are afraid of
             | programming and don't understand the software development
             | lifecycle.
             | 
             | The other red flag: "app". You're trying to "revolutionize
             | nuclear power deployment performance" with an ... app?
             | Look, I get that "app" is just short for "application" and
             | therefore could mean anything, including an advanced
             | industry-centric analysis tool. But it doesn't, does it?
             | You wouldn't use the word "app" for that. So you're trying
             | to revolutionize nuclear power with a $2 app in the Apple
             | Store or something? That's what it sounds like to me.
             | 
             | Again, think of me as an investor. If that's your elevator
             | pitch, I've come away with the message "big ideas with
             | absolutely no idea how to deliver on them".
        
           | kamranjon wrote:
           | With an attitude like that it's no surprise you are still
           | looking. Let's be honest, the good devs, with good
           | communication and people skills, they already have jobs and
           | their companies will do whatever they can to keep them.
        
             | P_I_Staker wrote:
             | His was a valid retort to an annoying gripe from highly
             | entitled managers. I've worked with plenty of top level
             | devs. In SVish companies with boatloads of money this may
             | be true for the top 1% of devs (some startups seem to have
             | this culture), but that's just a piece of the tech world.
             | 
             | The reality is that for a massive number of devs working
             | for traditional businesses, there isn't all that much on
             | the table. You can try to move up into the management caste
             | and get big bumps, but you're only going to get incremental
             | advancements.
             | 
             | I actually wonder if any companies have considered massive
             | salaries to be a liability in litigation, because it could
             | be pointed to as an example of unfair wages.
             | 
             | Anyway, you're getting a fancy management job, or some
             | super elite dev job.
        
             | feoren wrote:
             | > they already have jobs and their companies will do
             | whatever they can to keep them.
             | 
             | I truly wish I lived in the world you imagine. I've been in
             | the job I'm leaving for 13 years, received top-tier
             | performance reviews every year, constant improvement, very
             | good software, technical lead of one of the most profitable
             | teams in the entire (huge) company. Everyone who has ever
             | worked with me directly has great things to say. Meanwhile
             | the vice presidents of such-and-such that play musical
             | chairs with their titles every 2 years _do not care_. I
             | have made it very clear what they need to do to keep me
             | (and it 's not onerous, in fact it's mutually beneficial
             | for everyone and completely in line with the CEO's vision),
             | and they _do not care_. I 'm not sitting in the right seat;
             | I'm not already buddies with the right VP; so fuck me. I
             | can go get fucked.
             | 
             | It honestly sounds like you either have no real-world
             | experience or you've gotten _extremely_ lucky with the
             | company you found. If it 's the latter, do whatever you can
             | to stay there as long as it doesn't turn to shit (and it
             | can, at any point).
        
               | mcluck wrote:
               | To be fair, I wouldn't consider someone who has been in
               | the same company for 13 years an expert on the quality
               | and quantity of devs on the market. Your experience
               | within your one company is not a good indicator of the
               | rest of the market. Most people I know jump jobs every
               | 2-5 years going on to more and more interesting
               | opportunities. Even at these more interesting places, the
               | message is the same: we cannot find enough people.
        
               | betaby wrote:
               | Job hoppers with 2 years stints can't have any deep
               | domain knowledge. Neither can judge even their own code
               | quality/robustness/usefulness - that way too short period
               | of time.
        
               | BobbyJo wrote:
               | Define "domain". You can have tons of experience in a
               | single domain across many jobs. In fact, I would wager
               | that working in the same domain with differing groups of
               | people, toward differing requirements, gives you a richer
               | understanding of some domains compared to spending 10
               | years at a single employer.
               | 
               | Yeah, they aren't going to be the best with a specific
               | company's stack, but they'll likely have a better
               | perspective on how it can be improved.
        
             | masterof0 wrote:
             | This is not true, and just taking a dab on a fellow
             | engineer looking for a job is not cool or funny. With that
             | out of the way, most boring (insurance, e-shops,
             | healthcare, logistic, etc...) don't care about keeping
             | anyone(tech) around, so the "if you are good enough,
             | companies will try to keep you" is a lie, at least in the
             | US. Anyone can pickup their tech stack fairly quick. The
             | technique I have seen some "boring" companies use, is to
             | hire very junior folks , convince them they are making
             | progress in their careers , promoting them to SDE1, 2,
             | Senior SDE, Team Lead, etc... (and raising their
             | compensation to a 3-5% each time, and making it a big deal)
             | which means very little if your company doesn't have real
             | infra. Many people settle for a familiar
             | environment(sometimes the only they know) that pays them
             | just enough. In big tech is a bit different(in my
             | experience from Amazon, Msft and Google) , they do have
             | "Dive & Save" money, to keep you from going to the
             | competition.
        
         | sage76 wrote:
         | Define good. What specific skills do you want? How much
         | experience in each of those skills?
         | 
         | I have noticed that too many times employers want literal gods
         | to come in and fix their entire tech stack, their product, and
         | by extension their company.
         | 
         | Of course, they are frequently only paying average salaries.
        
       | dangus wrote:
       | This dude and this article are really not making a great case
       | here.
       | 
       | The last sentence of the tweet is a dead giveaway of the archaic
       | thinking. Why is WFH going to be blamed again? It feels like it's
       | yet another manager's plea for employees to come back to the
       | office and get micromanaged.
       | 
       | The article tries to answer my question:
       | 
       | > Work from home. The work from home trend is threatening office
       | jobs because it reduces the need for many traditional office
       | roles like secretaries and receptionists.
       | 
       | In what world are secretaries and receptionists a prevalent job
       | title in the first place? Is the author of this article retired
       | or something? The first wave of computing already shifted those
       | roles. Executive assistants to the SLT are not just answering
       | phones and twiddling thumbs. On top of that, in the modern world
       | receptionists are one of the most minimally staffed parts of a
       | company already. My last 1,000 employee in-person company had no
       | more than two or three receptionists and they were contracted out
       | to a vendor.
       | 
       | You know what is expanding post-pandemic? Co-working spaces. [1]
       | Technology and the pandemic aren't eliminating offices, they're
       | changing them. Many employees want a separate space to work, or a
       | place to collaborate in person, but they don't want to be forced
       | to go in daily. Companies don't want to have to make long-term
       | lease commitments and dedicate one seat per employee.
       | 
       | Guess who has receptionists? Coworking spaces. But again they
       | aren't sitting there twiddling their thumbs. WeWork and the rest
       | of the modern coworking spaces are highly automated. You can't
       | just ask the reception desk to fix something or make a change to
       | your office, you have to put in a ticket. These receptionists
       | wear many hats: they're salespeople, they set up events, they
       | communicate with tenants, they do light cleaning. Their tasks are
       | too varied to be replaced by an automation, and their salaries
       | aren't that expensive.
       | 
       | > In contrast, the increasingly widespread adoption of enterprise
       | software, data analytics, and machine learnings are increasingly
       | rendering office jobs moot as much of the traditional number
       | crunching, document processing, and repetitive analysis performed
       | by office professionals is now being performed by software.
       | 
       | Automation is driving new business ventures for precisely the
       | reasons the article brings up. Thousands of businesses exist
       | today that couldn't possibly exist because computing wasn't
       | powerful enough. As soon as you automate an enterprise task it
       | opens up more opportunity to provide more complex business
       | products and invite new ventures into the mix making products
       | that didn't exist in the past.
       | 
       | Being able to do more things with less money is basically always
       | a net positive.
       | 
       | > Furthermore, while restaurant, retail, and even factory workers
       | are all expected to be ultimately replaced by robots that tech
       | companies like Tesla (TSLA) are producing, this technology is
       | even further away from being widely deployed, with some
       | predicting these machines to not be meaningfully impactful until
       | the end of this decade.
       | 
       | Not 100% related to my argument, but this quote above is one of
       | the dumbest things this article claims. Anyone who thinks that
       | retail and hospitality workers are going to straight up be
       | replaced by robots is delusional, especially with the timeframe
       | of "the end of this decade."
       | 
       | It costs something like $20/hour to hire a line cook, less in low
       | cost of living areas. Certainly, the future of hospitality has
       | fewer workers per customer, but that's just normal labor
       | optimization. There won't be a fully automated McDonald's, but
       | McDonald's employees work with a lot of automated devices. The
       | dexterity and intelligence of a human is very difficult to
       | replace entirely. Robots aren't going to be talking to customers
       | at the Apple Store, the whole reason people are there is to talk
       | to a person, and retail salaries are already quite low.
       | 
       | And why is Tesla in this discussion? Tesla doesn't produce
       | factory automation robots. They purchase plain jane factory
       | robotics that have been part of the auto industry for decades.
       | It's like the article just wanted to bring up Tesla for no
       | reason.
       | 
       | > As a third strike against the safety of white collar jobs at
       | the moment, most companies have already more than fully recovered
       | their number of white collar jobs from before the COVID-19
       | outbreak.
       | 
       | The article from this point on is basically talking about the
       | normal boom/bust cycle of business, even though the beginning of
       | the article and Burry's tweet are talking about permanent
       | decline.
       | 
       | I'd say that this part of the article unintentionally makes the
       | opposite argument it's trying to make. It is directly stating
       | that blue collar job demand is worse, and white collar jobs
       | recovered almost immediately.
       | 
       | What is the actual structural reason why companies won't hire
       | more white collar workers? You can't just spew out "automation"
       | because the past 20 years or so has shown us the opposite trend
       | in relation to automation. White collar workers are the
       | foundation of automation companies.
       | 
       | [1]https://www.nytimes.com/2022/05/17/technology/coworking-
       | spac...
        
       | banach wrote:
       | The Bullshit Jobs bubble is bursting.
        
       | orsenthil wrote:
       | What is a white-collar job?
        
       | djmips wrote:
       | Love the lack of science with regard to the throwaway line about
       | WFH causing lower productivity.
        
       | xwdv wrote:
       | Maybe we should start referring to WFH jobs as virtual collar
       | jobs or something.
        
         | TigeriusKirk wrote:
         | Legacy jobs.
        
         | boppo1 wrote:
         | Sweatpants jobs.
        
           | DebtDeflation wrote:
           | You wear pants?
        
         | incogitomode wrote:
         | Email jobs!
        
       | fny wrote:
       | I'm not afraid to say Burry is wrong.
       | 
       | White-collar jobs will boom, but they'll be outsourced. Work from
       | home changes nothing about labor needs only labor location. If
       | anything, work-from-home is a net productivity negative for
       | large, bureaucratic organizations because slacking becomes even
       | easier.
        
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