The Turning Point: How 2023 Marked the Convergence of Technology and Economics

As a teenager, I took business studies classes in an attempt to and improve my college application. I thought taking extra A-Levels at night school would impress admissions tutors. During one class, the data showed that keeping factory trucks and drivers in-house was more expensive in the long run. The teacher and the class agreed it was smart to sell everything for a bigger profit in the quarter and be cheaper for the next two years. However, for me, this was illogical.

With the influx of money and lax regulation, the tech industry behaves irresponsibly. The trend is to put money behind big bets, and if lucky, gain profits. However, many high-profile bets haven’t been successful. WeWork, for example, burned through $16.9 billion, ultimately failing. This behavior is pervasive across the tech industry, contributing to a glut of debt.

Streaming costs have increased due to studios vying for profit. The debt swinging around Netflix’s neck, and others who followed it into the streaming world, will need to be paid off. Now that growth has stalled, consumers with multiple subscriptions may need to cut back amidst a slowing economy.

The tech industry hypes up new technologies despite lackluster results, with machine learning being an example. These expensive boondoggles detract attention from real-world problems. Additionally, the focus of the industry can detract from actual workers who have lost their jobs, even at profitable companies.

The influx of money and lack of regulation has caused numerous issues in the tech industry, likely due to a disconnect from reality. This has resulted in the mismanagement of funds and layoffs across the sector.