this post was submitted on 25 Jan 2024
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Every day there’s more big job cuts at tech and games companies. I’ve not seen anything explaining why they all seam to be at once like this. Is it coincidence or is there something driving all the job cuts?

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[–] davel@lemmy.ml 57 points 11 months ago* (last edited 11 months ago) (3 children)

The Federal Reserve raised interest rates in order to cause layoffs. The capitalist class wanted to enlarge the reserve army of labor so that workers would be too worried about losing their jobs to demand raises.

'You Are Gambling With People's Lives': Warren Rips Powell Over Job-Killing Rate Hikes

[–] Pohl@lemmy.world 34 points 11 months ago (1 children)

This is a thing that sounds like some crazy uncle bullshit but it is actually completely true and non-controversial.

The scariest thing to a central banker when it comes to inflation is that wages might start to go up. When that happens the inflations is basically permanent.

[–] davel@lemmy.ml 21 points 11 months ago* (last edited 11 months ago) (2 children)

People need to understand that the Federal Reserve is the cartel of the US private banks, and that they have captured the US Treasury as well, which is the US sovereign fiat money printer. Just look at the history of people in executive positions at the Treasury and the Fed. It’s a revolving door between those positions and the executive positions at major US banks and corporations.

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[–] Ipodjockey@lemmy.world 13 points 11 months ago

I agree this has got to be the root reason. They are scared.

[–] BaldProphet@kbin.social 9 points 11 months ago (1 children)

Which is ironic because one of the Fed's chartered purposes is to maximize employment. I guess maximizing profits is more important, even though it's not on the list.

[–] davel@lemmy.ml 16 points 11 months ago* (last edited 11 months ago)

Yup. From an article I linked to in another comment:

The Federal Reserve Board’s ostensible policy aim is to manage the money supply and bank credit in a way that maintains price stability. That usually means fighting inflation, which is blamed entirely on “too much employment,” euphemized as “too much money.” In Congress’s more progressive days, the Fed was charged with a second objective: to promote full employment. The problem is that full employment is supposed to be inflationary – and the way to fight inflation is to reduce employment, which is viewed simplistically as being determined by the supply of credit.

So in practice, one of the Fed’s two directives has to give. And hardly by surprise, the “full employment” aim is thrown overboard – if indeed it ever was taken seriously by the Fed’s managers.