I see a lot of people blaming this on AI and raised interest rates.
The real reason for this stagnation is Section 174 of IRS code that was added by the 2017 tax cut bill. The section took effect in 2022 and was added to balance the budget.
This section basically doesn't allow to deduct cost of the software engineers and they are amortized over 5 years (10 years for international engineers). This puts some strains to regular businesses, but it kills start ups, as they are required to pay taxes even when they are still not profitable and might not even pay 5 years.
Lack of start ups means there is smaller number of openings which is lower mobility. Combined with amortization, it discourages hiring new people as again it requires 5 years.
I see this being dismissed and "it is definitively the interest rates and AI" AI is nowhere close to replace software engineers, in fact from the coworkers that enthusiastically embraced it I see lower quality of code. Interest rates actually came back to what they originally were before 2008.
The hiring issues started exactly when section 174 went into effect. I think the hiring craze in 2021 was only because companies realized that with slim margins in Congress a bill won't pass that will repeal it so they were hiring like crazy before it become a law. Indeed Democrats were trying to repeal it, it even pass the house, but it was blocked by Republicans in the Senate. Because God forbid they would help Americans and in turn let economy to look good under Biden.
Frankly after election there are two things that bugged me in California. There was a proposition that removed mandatory work requirement for inmates comparing it to a modern day slavery. There was no one who was willing to endorse vote against it (I suppose due to optics) yet the proposition failed.
When he visited CA after fires were already put down and made that spectacle with water dam, he also mentioned that he had a good feeling about next election.
I have a feeling that maybe CA voting is also compromised and this was a test for California, as trump winning here would be extremely suspicious, but no one will care about this proposition.
Maybe not, but there's some merit to it. Initially it was a highly desirable car, now one is ashamed to be in because owner is a Nazi. Another problem is that there's much higher risk that someone else will damage it (again, because if the owner).
I'm not involved in LLM, but apparently the way it works is that the sentence is broken into words and each word has assigned unique number and that's how the information is stored. So LLM never sees the actual word.
This not only hurts environment but also the consumer, as they are essentially gutting regulation that made car go further on a gallon of gasoline. This shows really well who they are working for.
Sorry for not being clear. I do too think that musk helped in a significant way, but I wanted to someone to reasons to musk this way to trigger him and hopefully spill more incriminating information.
Assuming the feud is real (I'm still suspicious, as when they announced him leaving no one believed musk was truly leaving) I would imagine musk would try to get trump removed and after failing I really wouldn't be surprised we would see some assassination attempts.
BTW I'm not on Twitter, but when he says that trump wouldn't win election without him, I wish people would respond that he is full of bullshit and trump alone would win anyway, pushing him to say more.
We have seen those things already... The Republicans will say that there's snowball chance in hell that they will pas it then at 4am will pass it with a single vote.
He gets most attention, but apparently 90% off then didn't even have any conviction and even those who did maybe should be deported to their home country not to a gulag.
And no matter how much they say they are guilty, all deserve a due process. In a democratic country you can't just let someone decide who gets it and who doesn't.
I see a lot of people blaming this on AI and raised interest rates.
The real reason for this stagnation is Section 174 of IRS code that was added by the 2017 tax cut bill. The section took effect in 2022 and was added to balance the budget.
This section basically doesn't allow to deduct cost of the software engineers and they are amortized over 5 years (10 years for international engineers). This puts some strains to regular businesses, but it kills start ups, as they are required to pay taxes even when they are still not profitable and might not even pay 5 years.
Lack of start ups means there is smaller number of openings which is lower mobility. Combined with amortization, it discourages hiring new people as again it requires 5 years.
I see this being dismissed and "it is definitively the interest rates and AI" AI is nowhere close to replace software engineers, in fact from the coworkers that enthusiastically embraced it I see lower quality of code. Interest rates actually came back to what they originally were before 2008.
The hiring issues started exactly when section 174 went into effect. I think the hiring craze in 2021 was only because companies realized that with slim margins in Congress a bill won't pass that will repeal it so they were hiring like crazy before it become a law. Indeed Democrats were trying to repeal it, it even pass the house, but it was blocked by Republicans in the Senate. Because God forbid they would help Americans and in turn let economy to look good under Biden.