7 ms·

Maybe we're in a bubble but it doesn't matter

89 points by zaveri 14y ago

dgant 14y ago
Another point to add to Justin's: Few skillsets grant you more of an ability to be self-reliant than the ability to understand and write software -- even if there's no job description written for what you do, or no company who will hire you. In almost any field of entrepreneurship, if you have tech savvy which your competitors don't, you have an inherent advantage against them and an ability to crack open the market. Are you a DJ or party promoter who understands SEO/SEM and social media? You've got a leg up. Are you the only person in your area who understands both fashion apparel supply chains and software? You could be providing immense value.
- AznHisoka 14y ago
  I don't think knowing how to write software is needed to understand SEO/SEM
  - dgant 14y ago
    True. I could have been more careful with my phrasing. The original point, stated differently: Understanding software and the modern web -- even short of being able to write it -- can still give someone a sizeable advantage in many fields.
BlackNapoleon 14y ago
Theres just so little value in the stuff being produced. Its absurd. Where are the people who are designing actual tangible items? Why is so much of this stuff only fluff and entertainment?
- tartuffe78 14y ago
  Because it's what people want to pay for
  - kenrikm 14y ago
    ^ bingo. This could change and I hope it does to some extent but for the time being it is what it is.
    - rabidsnail 14y ago
      I don't hope it does. I'd rather we have fluff made of ones and zeroes that costs virtually no marginal energy to produce than fluff that you have to ship from China at great energy expense. Unless you live in a tent and eat nothing but cornmeal, tofu, and nutritional supplements everything you own is fluff.
- AznHisoka 14y ago
  because our deepest needs are unfulfilled and entertainment is opium for the masses.
- ecubed 14y ago
  Correct me if I'm wrong, but fluff and entertainment has a much lower barrier to entry than tackling real, tangible problems. Writing software is "free" in that I can sit and code for a few months in my free time, and put out a halfway decent game or piece of "fluff" software as you call it. Inventing the next battery technology, on the other hand, requires several PhD's and millions in funding.
  - BlackNapoleon 14y ago
    True, but I don't see why we shouldn't critique the fact of the matter.
- rabidsnail 14y ago
  Because the parts of the economy providing food and housing take up a small fraction of the total work available to be done. The rest of the work (ie surplus) can go to one of three things: 1. "Storing food for the winter". R&D to prepare us for challenges we'll face in the future. Ex: alternative energy research. This sort of thing is extremely difficult to fund in a capitalist society. We need more of it. 2. Waste. Accounting and lawyering and sales and such. 3. Entertainment. Everything from movies to luxury goods. If given a choice between 2 and 3, I'd pick 3 any day. I'd like for there to be more of 1, but I guess that makes me a socialist :). I don't see any functional difference between a Farmville cow and a ceramic cow that sits on a mantlepiece. They have exactly the same practical use, but one cost way more energy to produce than the other. My argument for how Farmville will save us from global warming is a post for another time. tl;dr: Value is what the market says it is, not what you say it is. See also: http://www.slate.com/blogs/moneybox/2011/12/12/let_them_eat_food_preparation_jobs.html http://www.slate.com/blogs/moneybox/2011/12/12/let_them_eat_...
  - conover 14y ago
    Accounting and practicing law is a waste?
    - rabidsnail 14y ago
      Have you ever met an accountant that gets up in the morning excited to get to accoutning? Have you ever heard someone say: "Today is my lucky day! I get to go see my accountant!"? I'm not saying they're not necessary. But if the economy were a mechanical system, law and accounting would be the friction between the belts and the wheels that produces waste heat.
      - carguy1983 14y ago
        I wouldn't call it waste. I would call it overhead, which is very different than waste.
      - megrimlock 14y ago
        This may sound crazy, but there are people drawn to accounting or insurance who are simply numerate, who love numbers and precision and carefully designing rules that accomodate the fascinating special cases of the real world, and who do enjoy that kind of work. It sounds dreary and gray, and we like to scoff at it as bean-counting, but it does appeal to a certain detail-oriented mindset that isn't all that far off from some forms of engineering. Here's another view: Accounting is the instrumentation that lets you make sure the machine (the business) stays calibrated, and that the inputs match up to the outputs.
- rscale 14y ago
  There's plenty of action occurring outside of consumer Internet, but it doesn't get much coverage on general interest sites like HN since we need specialized knowledge to understand why those companies are interesting, special and valuable.
- olalonde 14y ago
  Because heavily regulated industries are much harder to disrupt. The risk and barrier to entry to medicine, food/nutrition, finance, etc. is very high mainly due to heavy regulation and cronyism.
- csmeder 14y ago
  Two factors are going on. That result in the current social media gold rush. # Factor 1 The first is the fact that the people who have disposable income already own more tangible items than the ultra wealthy of our cave dwelling ancestors did. In terms of value. # Factor 2 Since people already own most of the tangible things needed to live a comfortable life, consumer focused companies need methods to find the specific consumers that are currently interested in buying tangible things, or who can be convinced to be interested. They then need to profile these people and then present them with messages engineered to elicit feelings of hope for fulfillment (I say hope, because often the fulfillment does not come). This is describing classic consumer research and classic advertising. This is currently a costly process*. U.S. ad spending grew 6.5% in 2010 to $131.1 billion, according to new data from Kantar Media. # The Result A huge market has been created. A very real market. As an aggregate our private information and attention (market research & advertising) is quite valuable. Not to say this market is so vast it eclipses all others. Facebook is valued at over 100 Billion according to some. Selling tangible goods like oil or Apple products seem to still be larger than this market. So a few individual markets are larger than social networking market? We live in a world where the ability to line people up, study then and then use psychological tactics to hook into their desires and wants, on an aggregate, is worth more than the products on an individual case are worth. # An Analogy If this is hard to wrap your brain around, think of this analogy. Imagine a world where the automobile, plane, boat etc were never invented and no roads exist. However a few Rail Road companies exist. The FB RR, the Twitter RR, Instagraam RR and the Pinterest RR company. The FB RR just bought Instagram RR. Companies like Coca-Cola sell tangible products (sugar water) And before the 4 mentioned Rail Roads existed Coca-Cola did quite well selling its sugar water. It has become a billion dollar business. By way of Pony Express (Television, magazines, research groups) many people have chosen to buy Coca-Cola. However, from its point of view it could sell more and hiring men to carry large sums of sugar water long distances on horseback is expensive. And worse now that Rail Roads are popping up in small towns competing companies such as Pepsi, Jones soda, etc are delivering their sugar water for cheaper. The truth is if no Rail Road existed and no Pony express, you or I would be fine. We would drink water, we would tend our farm and trade carrots for apples. Which we would use to make apple juice. Evolutionary speaking we don't need Coca-Cola. And the heads of Coca-Cola know this. If they don't start paying the FB, Twitter, Instagram and Pinterest RR to ship their sugar water to local towns people will stop buying Coca-Cola. A billion dollar business is at the mercy of these 4 Rail Roads. But it’s not just Coca-Cola. There are millions of businesses in the same boat. So yes, social networks provide intangible goods to you and I, however, to consumer focused companies they are essential for Sugar Water Co to be a billion dollar company in today's economy. The result is a gold rush, and though you may feel morally against this gold rush, you can’t deny it’s not real money, real value being created. A better mouse trap has been built. It creates wealth. In this case this mouse trap tracks you, analyzes you and convinces you to spend your money on Sugar Water. This is a tanigable, valuable and desirable good to many rich people.
spwert 14y ago
> News sites with a better grasp of how the Internet works, like HuffPo or Mashable, are worth hundreds of millions. I've been wondering - when all the old media inevitably die off, where are these aggregators going to find their content?
- rabidsnail 14y ago
  From AP and Reuters, who they pay for the privilege.
- olalonde 14y ago
  HuffPo and Mashable are no more aggregators than old media. Most of their content is original.
- jonny_eh 14y ago
  Most articles you see in traditional papers are not original. We're going from offline news aggregators to online news aggregators.
ecubed 14y ago
Really insightful article, especially for someone like me: a EE/CE student wondering about whether or not the current trends in tech jobs will continue into the future. I know I can get a job when I graduate in either hardware or software design, but I've been uncertain as to how quickly the industry will saturate and whether or not jobs will still be around (or pay well enough to be satisfied with the additional educational investment) in 5-10 years. Glad to see some insightful, well-informed confidence in the future of the industry.
jjb123 14y ago
> Most people aren’t self aware enough to realize what is happening that is making their jobs disappear: a strong trend in software automation to make business processes more efficient. This reminds me of a really helpful salesperson at the Apple store that was really excited/proud to tell me that you can now walk in and purchase an item without ever talking to a salesperson...
- mitjak 14y ago
  I'm guessing he was excited because he knew very well that the majority of people at an Apple store have no idea what they really want to buy and need the salesperson's expertise. Probably the same reason that BestBuy hasn't been killed by Amazon yet.
  - jjb123 14y ago
    Right, I truly think it was genuine pride for the excellent addition of technology to the process. The guy rocked, but the point remains - the addition he's excited about will likely result in frictional unemployment in his particular position.
  - fomojola 14y ago
    Give it a minute...
- toomuchtodo 14y ago
  Wut. I had NO IDEA you could do this. off to the Naperville Apple store
mukaiji 14y ago
Software is indeed eating the world. What's going to devour it? HARDWARE + SOFTWARE. think nest, tesla (yes, it's a huge software play), and the like.
rpeden 14y ago
When I read things like this, I have to wonder if the people saying it are really naive or sheltered enough to believe it: "You want to be in the tech game, because in time it will be the only game in town." Well, no...because tech won't be big enough to employ more than a relatively small percentage of the population. And it won't matter that companies want to pay tech workers to help automate people out of jobs. Because once everyone is unemployed, no amount of tech will keep a company in business if nobody is making enough to buy its products. Without a doubt, things are going to change. Just like they always have. Some industries will gain, and some will lost. Some people will find their skills in high demand, and some will find their skills obsolete. We won't, however, end up in world where you either work in tech or you're unemployed.
- deleted 14y ago
  [deleted]
- rscale 14y ago
  It's an especially odd statement coming from the founder of a company that employs people to run errands for other people.
  - wtvanhest 14y ago
    exactly. Everything they do will be replaced by machines.
  - justin 14y ago
    I guess my point was that I'd rather be the guy making the software that directs people around running errands then one of the guys running errands. To that end, I needed to have software engineering and product skills (otherwise I wouldn't have had the opportunity to even be in the position to start this company). To the grandfather's point, I might be naive but when we automate away large numbers of people's jobs of course we will have to figure out some sort of wealth redistribution to give those people spending power (we do this right now in social welfare). However, my bet is that if you are one of the people doing the automating you'll be a lot better off than one of the people on welfare, because we've never in the history of humankind had perfect wealth redistribution.
socialist_coder 14y ago
Justin is fundamentally missing what people are saying the bubble is. From my perspective, no one is arguing that high tech and programming won't be more and more important in the future. "Anyone who tells you that you shouldn’t be in tech, or that the current market situation will create an oversupply of people in tech, is doing you a massive disservice." Who is saying this? I don't think anyone is trying to dissuade people from getting high tech skills. I believe that the bubble consists of the massive amount of startups that do not actually provide a valuable service. Do we really need another social network or sharing site or "X for Y"? No, we don't, but it seems like 90% of the startups getting funded by incubators are just rehashes of that. I believe that point is explained very well here: http://scripting.com/stories/2012/04/19/itsDefinitelyABubble.html http://scripting.com/stories/2012/04/19/itsDefinitelyABubble... The key points are here: ======== 2. We're bundling young people into things called startups, and selling them to investors for ever-increasing amounts of money. 3. In an effort to bring more suckers in, they just passed a law that makes it legal to pimp these startups to people who don't know anything. You will be able to take their investment by swiping a credit card. Probably using a $4 billion valuation Square dongle for an iPhone. 4. They have started incubators in every major city on the planet. Unfortunately it hasn't been stylish to learn how to program for a number of years, so there aren't that many programmers available to hire. And it takes years to get really good at this stuff. 5. Even if they could find enough programmers, there aren't that many businesses to start to satisfy the demand for investment vehicles. A lot like the situation with mortgages in the last bubble. So the VCs and angels and no doubt some very shady folks are putting together deals with people who can't program with no actual idea for the business. Don't look to Y-Combinator, they're the quality act here. But there are incubators in every city from Santiago to Beirut. ======== The most important sentence there is "A lot like the situation with mortgages in the last bubble. So the VCs and angels and no doubt some very shady folks are putting together deals with people who can't program with no actual idea for the business." And that is the bubble. Startups being founded with people who can't program with no actual idea for the business. Just like the last mortgage bubble. And to be fair to Justin, I think twitch.tv is great. It is novel, has a clear path to monetization, and provides a service that people actually want. We need more venues for professional gaming and twitch.tv is a great step in that direction.
- 14y ago
olalonde 14y ago
On the other hand, there might come a time where software becomes so important and pervasive that it won't make sense anymore to call yourself a software engineer or a software company. I'm guessing there was once a time where the next big thing was to become a mathematician. However, mathematics has grown so central to so many fields that very few people nowadays call themselves mathematicians or dream of building mathematics companies. I wonder if programming will not simply become an increasingly important tool within other disciplines or if everyone is really just going to start studying CS/software engineering. This is probably more an argument on semantics than a rebuttal.
- moistgorilla 14y ago
  I completely agree with this post, soon people are going to open their eyes and programming will be taught from elementary school to high school. Not being able to program will be equivalent to what being illiterate was.
  - socialist_coder 14y ago
    100% agree My child will be bilingual. English and 10010101001.
  - jboggan 14y ago
    I agree with this, but I think we're closer to Pharaonic Egypt than the Enlightenment in terms of code literacy. We're going to be the scribes for a long, long time.
  - randomdata 14y ago
    I agree, but I'll point out that programming has been part of the curriculum in this locality since at least the time my dad was in high school. He tells of writing programs on punch cards. We started with BASIC when I was in elementary school. Despite that, I don't know of anyone who I went to school with that could write a single line of code today. Of them, I do have one friend who is also in the software business, but his skills lie in other area of production. He admits he cannot program. For your vision to come true, programming will have to become much more fundamental, to the point that something else will have to be cut. Which other subject should get the axe?
jonny_eh 14y ago
I agree 100% with the article, but to me it disagrees with the headline. He's arguing that we shouldn't worry because we're not, in fact, in a bubble.
adavies42 14y ago
proof positive we're in a bubble: http://wag.com/ http://wag.com/. http://pets.com/ http://pets.com/ is back!
- aristus 14y ago
  Wag.com (and soap.com, diapers.com, etc) are wholly-owned, very profitable subsidiaries of Amazon.
mtoddh 14y ago
It's funny to look back at news articles when past bubbles were forming and compare it to the articles that are popping up now about startups. It's hard not to see similarities. Take this 2005 NYT times article, titled "Trading Places: Real Estate Instead of Dot-Coms", for instance (http://www.nytimes.com/2005/03/25/business/25boom.html http://www.nytimes.com/2005/03/25/business/25boom.html): 'Premonitions of a bubble on the verge of popping do not ruffle those who are bullish on real estate. In Miami, Ron Shuffield, president of Esslinger-Wooten-Maxwell Realtors, predicted that a limited supply of land coupled with demand from baby boomers and foreigners would prolong the boom indefinitely. "South Florida," he said, "is working off of a totally new economic model than any of us have ever experienced in the past."' It seems like a lot of the same kinds of thinking in Justin's article, "we might be in a bubble, but for you it doesn’t matter. The reality of the world is that software, specifically Internet enabled software, is becoming a part of every business. Marc Andreessen said “software is eating the world,” and by that he meant that as time goes on, every industry is becoming a software industry...You want to be in the tech game, because in time it will be the only game in town."
JVIDEL 14y ago
The first thing you have to do to understand why bubbles happen is to stop believing everyone in it is being 100% rational. The reality is that for most investors the vague notion that they might be missing a great opportunity far outweights any well documented evidence that they are walking into a sinkhole. Many investors from the dotcom bubble simply left the market and new ones took their places. If there's money to be made some people will always be there, it doesn't gets more complex than that. So basically you shouldn't stay out of tech right now just like you shouldn't stay out of tech in 1998. You should've done that in 2001 when everything started to collapse. Funny that Justin mentions Amazon because that company took a nosedive back then. Question is, how long we have until the next 2001? When that happens many people, including "negationists" and wantrepreneurs will GTFO from tech as fast as they can rip the copper wire from their office walls.
cjmauthor 14y ago
I thought I would add some support for the argument of choosing the tech sector as a career. If you look at the statistics it seems that 5 out of the top 10 jobs of 2012 according to this survey is in the tech sector with software development being number 2. And the estimations for the coming years are pretty staggering. Tech is probably not a bad field to be in, lucky me, I think. http://money.usnews.com/careers/best-jobs/rankings/the-25-best-jobs http://money.usnews.com/careers/best-jobs/rankings/the-25-be...
JumpCrisscross 14y ago
This article conflates two issues: the secular trend that is "software eating the world" and the local trend which is a valuation spike. »The truth is that the technology sector as a whole over any length of time is a positive-sum game Actually, no - a bubble means people aren't investing on fundamentals but on momentum; the expected value of the investment is negative. If we were in a bubble (as in bubbles past) we wouldn't be in a positive sum game. Saying that it would be a net positive game over "any period of time" is economically and empirically ridiculous. I happen to believe that we are not in a bubble. But if we were it would matter - it would mean that when the bubble pops opportunities in the field would decrease in frequency and magnitude. Since career scars early on have more persistent effects than displacements later in life it follows that an aspiring tech star cannot ignore the market realities of what they're going into. We are mortal, we can't just ride the secular trend. The local time scale matters, too.

89 points by zaveri 14y ago

dgant 14y ago

Another point to add to Justin's: Few skillsets grant you more of an ability to be self-reliant than the ability to understand and write software -- even if there's no job description written for what you do, or no company who will hire you. In almost any field of entrepreneurship, if you have tech savvy which your competitors don't, you have an inherent advantage against them and an ability to crack open the market. Are you a DJ or party promoter who understands SEO/SEM and social media? You've got a leg up. Are you the only person in your area who understands both fashion apparel supply chains and software? You could be providing immense value.

AznHisoka 14y ago
I don't think knowing how to write software is needed to understand SEO/SEM
- dgant 14y ago
  True. I could have been more careful with my phrasing. The original point, stated differently: Understanding software and the modern web -- even short of being able to write it -- can still give someone a sizeable advantage in many fields.

BlackNapoleon 14y ago

Theres just so little value in the stuff being produced. Its absurd. Where are the people who are designing actual tangible items? Why is so much of this stuff only fluff and entertainment?

tartuffe78 14y ago
Because it's what people want to pay for
- kenrikm 14y ago
  ^ bingo. This could change and I hope it does to some extent but for the time being it is what it is.
  - rabidsnail 14y ago
    I don't hope it does. I'd rather we have fluff made of ones and zeroes that costs virtually no marginal energy to produce than fluff that you have to ship from China at great energy expense. Unless you live in a tent and eat nothing but cornmeal, tofu, and nutritional supplements everything you own is fluff.
AznHisoka 14y ago
because our deepest needs are unfulfilled and entertainment is opium for the masses.
ecubed 14y ago
Correct me if I'm wrong, but fluff and entertainment has a much lower barrier to entry than tackling real, tangible problems. Writing software is "free" in that I can sit and code for a few months in my free time, and put out a halfway decent game or piece of "fluff" software as you call it. Inventing the next battery technology, on the other hand, requires several PhD's and millions in funding.
- BlackNapoleon 14y ago
  True, but I don't see why we shouldn't critique the fact of the matter.
rabidsnail 14y ago
Because the parts of the economy providing food and housing take up a small fraction of the total work available to be done. The rest of the work (ie surplus) can go to one of three things: 1. "Storing food for the winter". R&D to prepare us for challenges we'll face in the future. Ex: alternative energy research. This sort of thing is extremely difficult to fund in a capitalist society. We need more of it. 2. Waste. Accounting and lawyering and sales and such. 3. Entertainment. Everything from movies to luxury goods. If given a choice between 2 and 3, I'd pick 3 any day. I'd like for there to be more of 1, but I guess that makes me a socialist :). I don't see any functional difference between a Farmville cow and a ceramic cow that sits on a mantlepiece. They have exactly the same practical use, but one cost way more energy to produce than the other. My argument for how Farmville will save us from global warming is a post for another time. tl;dr: Value is what the market says it is, not what you say it is. See also: http://www.slate.com/blogs/moneybox/2011/12/12/let_them_eat_food_preparation_jobs.html http://www.slate.com/blogs/moneybox/2011/12/12/let_them_eat_...
- conover 14y ago
  Accounting and practicing law is a waste?
  - rabidsnail 14y ago
    Have you ever met an accountant that gets up in the morning excited to get to accoutning? Have you ever heard someone say: "Today is my lucky day! I get to go see my accountant!"? I'm not saying they're not necessary. But if the economy were a mechanical system, law and accounting would be the friction between the belts and the wheels that produces waste heat.
    - carguy1983 14y ago
      I wouldn't call it waste. I would call it overhead, which is very different than waste.
    - megrimlock 14y ago
      This may sound crazy, but there are people drawn to accounting or insurance who are simply numerate, who love numbers and precision and carefully designing rules that accomodate the fascinating special cases of the real world, and who do enjoy that kind of work. It sounds dreary and gray, and we like to scoff at it as bean-counting, but it does appeal to a certain detail-oriented mindset that isn't all that far off from some forms of engineering. Here's another view: Accounting is the instrumentation that lets you make sure the machine (the business) stays calibrated, and that the inputs match up to the outputs.
rscale 14y ago
There's plenty of action occurring outside of consumer Internet, but it doesn't get much coverage on general interest sites like HN since we need specialized knowledge to understand why those companies are interesting, special and valuable.
olalonde 14y ago
Because heavily regulated industries are much harder to disrupt. The risk and barrier to entry to medicine, food/nutrition, finance, etc. is very high mainly due to heavy regulation and cronyism.
csmeder 14y ago
Two factors are going on. That result in the current social media gold rush. # Factor 1 The first is the fact that the people who have disposable income already own more tangible items than the ultra wealthy of our cave dwelling ancestors did. In terms of value. # Factor 2 Since people already own most of the tangible things needed to live a comfortable life, consumer focused companies need methods to find the specific consumers that are currently interested in buying tangible things, or who can be convinced to be interested. They then need to profile these people and then present them with messages engineered to elicit feelings of hope for fulfillment (I say hope, because often the fulfillment does not come). This is describing classic consumer research and classic advertising. This is currently a costly process*. U.S. ad spending grew 6.5% in 2010 to $131.1 billion, according to new data from Kantar Media. # The Result A huge market has been created. A very real market. As an aggregate our private information and attention (market research & advertising) is quite valuable. Not to say this market is so vast it eclipses all others. Facebook is valued at over 100 Billion according to some. Selling tangible goods like oil or Apple products seem to still be larger than this market. So a few individual markets are larger than social networking market? We live in a world where the ability to line people up, study then and then use psychological tactics to hook into their desires and wants, on an aggregate, is worth more than the products on an individual case are worth. # An Analogy If this is hard to wrap your brain around, think of this analogy. Imagine a world where the automobile, plane, boat etc were never invented and no roads exist. However a few Rail Road companies exist. The FB RR, the Twitter RR, Instagraam RR and the Pinterest RR company. The FB RR just bought Instagram RR. Companies like Coca-Cola sell tangible products (sugar water) And before the 4 mentioned Rail Roads existed Coca-Cola did quite well selling its sugar water. It has become a billion dollar business. By way of Pony Express (Television, magazines, research groups) many people have chosen to buy Coca-Cola. However, from its point of view it could sell more and hiring men to carry large sums of sugar water long distances on horseback is expensive. And worse now that Rail Roads are popping up in small towns competing companies such as Pepsi, Jones soda, etc are delivering their sugar water for cheaper. The truth is if no Rail Road existed and no Pony express, you or I would be fine. We would drink water, we would tend our farm and trade carrots for apples. Which we would use to make apple juice. Evolutionary speaking we don't need Coca-Cola. And the heads of Coca-Cola know this. If they don't start paying the FB, Twitter, Instagram and Pinterest RR to ship their sugar water to local towns people will stop buying Coca-Cola. A billion dollar business is at the mercy of these 4 Rail Roads. But it’s not just Coca-Cola. There are millions of businesses in the same boat. So yes, social networks provide intangible goods to you and I, however, to consumer focused companies they are essential for Sugar Water Co to be a billion dollar company in today's economy. The result is a gold rush, and though you may feel morally against this gold rush, you can’t deny it’s not real money, real value being created. A better mouse trap has been built. It creates wealth. In this case this mouse trap tracks you, analyzes you and convinces you to spend your money on Sugar Water. This is a tanigable, valuable and desirable good to many rich people.

spwert 14y ago

> News sites with a better grasp of how the Internet works, like HuffPo or Mashable, are worth hundreds of millions. I've been wondering - when all the old media inevitably die off, where are these aggregators going to find their content?

rabidsnail 14y ago
From AP and Reuters, who they pay for the privilege.
olalonde 14y ago
HuffPo and Mashable are no more aggregators than old media. Most of their content is original.
jonny_eh 14y ago
Most articles you see in traditional papers are not original. We're going from offline news aggregators to online news aggregators.

ecubed 14y ago

Really insightful article, especially for someone like me: a EE/CE student wondering about whether or not the current trends in tech jobs will continue into the future. I know I can get a job when I graduate in either hardware or software design, but I've been uncertain as to how quickly the industry will saturate and whether or not jobs will still be around (or pay well enough to be satisfied with the additional educational investment) in 5-10 years. Glad to see some insightful, well-informed confidence in the future of the industry.

jjb123 14y ago

> Most people aren’t self aware enough to realize what is happening that is making their jobs disappear: a strong trend in software automation to make business processes more efficient. This reminds me of a really helpful salesperson at the Apple store that was really excited/proud to tell me that you can now walk in and purchase an item without ever talking to a salesperson...

mitjak 14y ago
I'm guessing he was excited because he knew very well that the majority of people at an Apple store have no idea what they really want to buy and need the salesperson's expertise. Probably the same reason that BestBuy hasn't been killed by Amazon yet.
- jjb123 14y ago
  Right, I truly think it was genuine pride for the excellent addition of technology to the process. The guy rocked, but the point remains - the addition he's excited about will likely result in frictional unemployment in his particular position.
- fomojola 14y ago
  Give it a minute...
toomuchtodo 14y ago
Wut. I had NO IDEA you could do this. off to the Naperville Apple store

mukaiji 14y ago

Software is indeed eating the world. What's going to devour it? HARDWARE + SOFTWARE. think nest, tesla (yes, it's a huge software play), and the like.

rpeden 14y ago

When I read things like this, I have to wonder if the people saying it are really naive or sheltered enough to believe it: "You want to be in the tech game, because in time it will be the only game in town." Well, no...because tech won't be big enough to employ more than a relatively small percentage of the population. And it won't matter that companies want to pay tech workers to help automate people out of jobs. Because once everyone is unemployed, no amount of tech will keep a company in business if nobody is making enough to buy its products. Without a doubt, things are going to change. Just like they always have. Some industries will gain, and some will lost. Some people will find their skills in high demand, and some will find their skills obsolete. We won't, however, end up in world where you either work in tech or you're unemployed.

deleted 14y ago
[deleted]
rscale 14y ago
It's an especially odd statement coming from the founder of a company that employs people to run errands for other people.
- wtvanhest 14y ago
  exactly. Everything they do will be replaced by machines.
- justin 14y ago
  I guess my point was that I'd rather be the guy making the software that directs people around running errands then one of the guys running errands. To that end, I needed to have software engineering and product skills (otherwise I wouldn't have had the opportunity to even be in the position to start this company). To the grandfather's point, I might be naive but when we automate away large numbers of people's jobs of course we will have to figure out some sort of wealth redistribution to give those people spending power (we do this right now in social welfare). However, my bet is that if you are one of the people doing the automating you'll be a lot better off than one of the people on welfare, because we've never in the history of humankind had perfect wealth redistribution.

socialist_coder 14y ago

Justin is fundamentally missing what people are saying the bubble is. From my perspective, no one is arguing that high tech and programming won't be more and more important in the future. "Anyone who tells you that you shouldn’t be in tech, or that the current market situation will create an oversupply of people in tech, is doing you a massive disservice." Who is saying this? I don't think anyone is trying to dissuade people from getting high tech skills. I believe that the bubble consists of the massive amount of startups that do not actually provide a valuable service. Do we really need another social network or sharing site or "X for Y"? No, we don't, but it seems like 90% of the startups getting funded by incubators are just rehashes of that. I believe that point is explained very well here: http://scripting.com/stories/2012/04/19/itsDefinitelyABubble.html http://scripting.com/stories/2012/04/19/itsDefinitelyABubble... The key points are here: ======== 2. We're bundling young people into things called startups, and selling them to investors for ever-increasing amounts of money. 3. In an effort to bring more suckers in, they just passed a law that makes it legal to pimp these startups to people who don't know anything. You will be able to take their investment by swiping a credit card. Probably using a $4 billion valuation Square dongle for an iPhone. 4. They have started incubators in every major city on the planet. Unfortunately it hasn't been stylish to learn how to program for a number of years, so there aren't that many programmers available to hire. And it takes years to get really good at this stuff. 5. Even if they could find enough programmers, there aren't that many businesses to start to satisfy the demand for investment vehicles. A lot like the situation with mortgages in the last bubble. So the VCs and angels and no doubt some very shady folks are putting together deals with people who can't program with no actual idea for the business. Don't look to Y-Combinator, they're the quality act here. But there are incubators in every city from Santiago to Beirut. ======== The most important sentence there is "A lot like the situation with mortgages in the last bubble. So the VCs and angels and no doubt some very shady folks are putting together deals with people who can't program with no actual idea for the business." And that is the bubble. Startups being founded with people who can't program with no actual idea for the business. Just like the last mortgage bubble. And to be fair to Justin, I think twitch.tv is great. It is novel, has a clear path to monetization, and provides a service that people actually want. We need more venues for professional gaming and twitch.tv is a great step in that direction.

14y ago

olalonde 14y ago

On the other hand, there might come a time where software becomes so important and pervasive that it won't make sense anymore to call yourself a software engineer or a software company. I'm guessing there was once a time where the next big thing was to become a mathematician. However, mathematics has grown so central to so many fields that very few people nowadays call themselves mathematicians or dream of building mathematics companies. I wonder if programming will not simply become an increasingly important tool within other disciplines or if everyone is really just going to start studying CS/software engineering. This is probably more an argument on semantics than a rebuttal.

moistgorilla 14y ago
I completely agree with this post, soon people are going to open their eyes and programming will be taught from elementary school to high school. Not being able to program will be equivalent to what being illiterate was.
- socialist_coder 14y ago
  100% agree My child will be bilingual. English and 10010101001.
- jboggan 14y ago
  I agree with this, but I think we're closer to Pharaonic Egypt than the Enlightenment in terms of code literacy. We're going to be the scribes for a long, long time.
- randomdata 14y ago
  I agree, but I'll point out that programming has been part of the curriculum in this locality since at least the time my dad was in high school. He tells of writing programs on punch cards. We started with BASIC when I was in elementary school. Despite that, I don't know of anyone who I went to school with that could write a single line of code today. Of them, I do have one friend who is also in the software business, but his skills lie in other area of production. He admits he cannot program. For your vision to come true, programming will have to become much more fundamental, to the point that something else will have to be cut. Which other subject should get the axe?

jonny_eh 14y ago

I agree 100% with the article, but to me it disagrees with the headline. He's arguing that we shouldn't worry because we're not, in fact, in a bubble.

adavies42 14y ago

proof positive we're in a bubble: http://wag.com/ http://wag.com/. http://pets.com/ http://pets.com/ is back!

aristus 14y ago
Wag.com (and soap.com, diapers.com, etc) are wholly-owned, very profitable subsidiaries of Amazon.

mtoddh 14y ago

It's funny to look back at news articles when past bubbles were forming and compare it to the articles that are popping up now about startups. It's hard not to see similarities. Take this 2005 NYT times article, titled "Trading Places: Real Estate Instead of Dot-Coms", for instance (http://www.nytimes.com/2005/03/25/business/25boom.html http://www.nytimes.com/2005/03/25/business/25boom.html): 'Premonitions of a bubble on the verge of popping do not ruffle those who are bullish on real estate. In Miami, Ron Shuffield, president of Esslinger-Wooten-Maxwell Realtors, predicted that a limited supply of land coupled with demand from baby boomers and foreigners would prolong the boom indefinitely. "South Florida," he said, "is working off of a totally new economic model than any of us have ever experienced in the past."' It seems like a lot of the same kinds of thinking in Justin's article, "we might be in a bubble, but for you it doesn’t matter. The reality of the world is that software, specifically Internet enabled software, is becoming a part of every business. Marc Andreessen said “software is eating the world,” and by that he meant that as time goes on, every industry is becoming a software industry...You want to be in the tech game, because in time it will be the only game in town."

JVIDEL 14y ago

The first thing you have to do to understand why bubbles happen is to stop believing everyone in it is being 100% rational. The reality is that for most investors the vague notion that they might be missing a great opportunity far outweights any well documented evidence that they are walking into a sinkhole. Many investors from the dotcom bubble simply left the market and new ones took their places. If there's money to be made some people will always be there, it doesn't gets more complex than that. So basically you shouldn't stay out of tech right now just like you shouldn't stay out of tech in 1998. You should've done that in 2001 when everything started to collapse. Funny that Justin mentions Amazon because that company took a nosedive back then. Question is, how long we have until the next 2001? When that happens many people, including "negationists" and wantrepreneurs will GTFO from tech as fast as they can rip the copper wire from their office walls.

cjmauthor 14y ago

I thought I would add some support for the argument of choosing the tech sector as a career. If you look at the statistics it seems that 5 out of the top 10 jobs of 2012 according to this survey is in the tech sector with software development being number 2. And the estimations for the coming years are pretty staggering. Tech is probably not a bad field to be in, lucky me, I think. http://money.usnews.com/careers/best-jobs/rankings/the-25-best-jobs http://money.usnews.com/careers/best-jobs/rankings/the-25-be...

JumpCrisscross 14y ago

This article conflates two issues: the secular trend that is "software eating the world" and the local trend which is a valuation spike. »The truth is that the technology sector as a whole over any length of time is a positive-sum game Actually, no - a bubble means people aren't investing on fundamentals but on momentum; the expected value of the investment is negative. If we were in a bubble (as in bubbles past) we wouldn't be in a positive sum game. Saying that it would be a net positive game over "any period of time" is economically and empirically ridiculous. I happen to believe that we are not in a bubble. But if we were it would matter - it would mean that when the bubble pops opportunities in the field would decrease in frequency and magnitude. Since career scars early on have more persistent effects than displacements later in life it follows that an aspiring tech star cannot ignore the market realities of what they're going into. We are mortal, we can't just ride the secular trend. The local time scale matters, too.