Barbarians Inside the Gates, by Bill Bonner and Joel Bowman

The destruction of a great country often starts with destruction of its middle class. From Bill Bonner and Joel Bowman at bonnerprivateresearch.substack.com:

Soaring debt and massive layoffs cut deep into America’s bleeding Middle Class…

(The Temple of Saturn in the Roman Forum, Rome. Source: Getty Images)

Bill Bonner, reckoning today from Baltimore, Maryland…

The Middle Class Delenda Est (the middle class must be destroyed).

In the next couple of days, we will look at Baltimore rowhouses …the plight of small farmers during the Roman Empire…and the meaning of “common sense,” among other things.

All of these themes come together in one extraordinary and magnificent spectacle – think “Gone with the Wind” meets “Stalingrad” – that is, the destruction of the middle class and the societies that depend on them. CNBC:

Household debt soars at fastest pace in 15 years as credit card use surges, Fed report says

Total debt jumped by $351 billion for the July-to-September period, the largest nominal quarterly increase since 2007, bringing the collective household IOU in the U.S. to a fresh record $16.5 trillion, up 2.2% from the previous quarter and 8.3% from a year ago.

And while debt is increasing, job prospects are receding. Charlie Bilello updates us on the job cuts in the tech industry:

  • Twitter cutting 50% of its workforce (estimated 3,700 jobs).
  • Facebook ($META): cutting 13% of its staff (11,000 jobs), its largest round of layoffs ever.
  • Snap ($SNAP): cutting 20% of its workforce (1,200 jobs).
  • Shopify ($SHOP): cutting 10% of its workforce (1,000 jobs).
  • Netflix ($NFLX): cut 450 jobs in two rounds of layoffs.
  • Microsoft ($MSFT): cutting <1% of workforce (1,000 jobs).
  • Salesforce ($CRM): cutting 1,000 jobs.
  • Robinhood ($HOOD): cutting 31% of its workforce.
  • Tesla ($TSLA): cutting 10% of its salaried workforce.
  • Lyft ($LYFT): cutting 13% of its workforce (700 jobs).
  • Redfin ($RDFN): cutting 13% of its workforce.
  • Coinbase ($COIN): cutting 18% of its workforce (1,100 jobs).
  • Stripe cutting 14% of its workforce (1,000 jobs).

In addition to these cuts, Amazon ($AMZN) has announced a hiring freeze, Apple ($AAPL) has paused almost all hiring, and Google ($GOOGL) is reducing new hiring by 50%.

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2 responses to “Barbarians Inside the Gates, by Bill Bonner and Joel Bowman

  1. Dictatorship of the Proletariat

    We can produce binary code, advertising profiles and poop emojis while importing most of the third world and remain first world. (honk!)
    Long Marching comrades always get rid of the middle class first because that is where the counter revolutions come from.

    The lower strata of the middle class – the small tradespeople, shopkeepers, retired tradesmen generally, the handicraftsmen and peasants – all these sink gradually into the proletariat, partly because their diminutive capital does not suffice for the scale on which Modern Industry is carried on, and is swamped in the competition with the large capitalists, partly because their specialized skill is rendered worthless by the new methods of production. Thus the proletariat is recruited from all classes of the population. — Karl Marx

    Like

  2. Maybe all those laid off tech workers could just Learn To Code.

    Like

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