Flood of labor from finance to tech

Computer World is reporting that students are considering changing from finance to IT and software development.  There is also specultation that many of the unemployed from Lehman, Meryll and WaMu will be sending their resumes to IBM, Microsoft, Google and Oracle.  This is a small sign that the economy is starting to right itself.  The sooner labor is put where it can best generate profit, the sooner we can get back to growing GDP.

This development underscores, why we need to reach a faster valuation of these so-called “toxic assets”.  The faster money flows out of unproductive investments and into productive ones, the better off our day-to-day lives will get.  Money invested in great companies yields cheaper and better products for consumers.  For investors it means higher profits, dividends and stock valuations.  The longer money is tied up in this bad investments, the longer we delay these fruits by holding back money from people in the economy ready to create new ventures.

Two things will help us get to faster valuations.  First and foremost, the government can stop injecting itself into the equation and showering money on worthless assets.  Secondly, we can eliminate the up-tick rule on shorting stocks.  When stocks are shorted someone makes a profit on the drop, once they make that profit, they can invest that money in something more productive.  Instead, regulators like Barney Frank and Christopher Cox would prefer money is left in withering investments.

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One thought on “Flood of labor from finance to tech

  1. Burgess Laughlin

    > “Computer World is reporting that students are considering changing from finance to IT and software development.”

    This raises a question. Do these students not have a passionate love of the field they originally chose? If they do have such a love, why would they switch to a lesser interest simply because the economy happens to be down in that area now? The long-term reality is that any sector of the economy might rise and fall a half-dozen times in a lifetime. That is no basis for choosing a central purpose in life.

    I describe my view of CPL here:

    http://aristotleadventure.blogspot.com/2008/05/what-is-central-purpose-in-life.html

    (The May 5, 2008 post on Making Progress: http://www.aristotleadventure.blogspot.com )

    I fear that many students are merely choosing careers instead of a central purpose in life, or, worse, merely choosing jobs instead of careers. If so, that is a possible symptom of the pragmatism that pervades our culture. In the Fall 2008 issue of The Objective Standard, Tara Smith has described well the philosophical disease of pragmatism.

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