> Is tech really that uniquely sensitive to interest rates while the rest of the economy doesn’t care?
This is likely due to IRS Section 174 which changed how tech salaries can be expensed.
This is likely due to IRS Section 174 which changed how tech salaries can be expensed.
As far as I was able to surmise, after becoming interested in the topic last year, it was a combination of factors: interest rates, 174, over hiring during 2020-2022, over estimating future demand for digital goods/services during the covid, lack of cheap money for funding unprofitable businesses, AI hype, and probably other factors.
The most logical answer is multiple events/factors all within a short span of time, rather than one single thing being the sole reason for the downturn.