It’s honestly really sad what’s been happening recently. Reddit with the API pricing on 3rd party apps, Discord with the new username change, Twitter with the rate limits, and Twitch with their new advertising rules (although that has been reverted because of backlash). Why does it seem like every company is collectively on a common mission of destroying themselves in the past few months?
I know the common answer is something around the lines of “because companies only care about making money”, but I still don’t get why it seems like all these social media companies have suddenly agreed to screw themselves during pretty much the period of March-June. One that sticks out to me especially is Reddit CEO, Huffman’s comment (u/spez), “We’ll continue to be profit-driven until profits arrive”. Like reading this literally pisses me off on so many levels. I wouldn’t even have to understand the context behind his comment to say, “I am DONE with you, and I am leaving your site”.
Why is it like this? Does everyone feel the same way? I’m not sure if it’s just me but everything seems to be going downhill these days. I really do hope there is a solution out of this mess.
This is basic economics. Increased interest rates mean companies will pay more for every dollar they borrow. This includes venture capital. Cheap borrowing is one of the reasons real estate values skyrocketed over the course of the past generation. Cheap money increased demand, and inflated costs. Do this long enough (maybe an economic collapse or recession between), and the house you bought in 1980 for $50k is now worth $400k.
Every company utilizes borrowing a lot more than you might think. From infrastructure, to payroll, borrowing money plays part in most activities of a company. It’s pretty complex.