this is an insanely stupid idea, being employed by large firms increases labor productivity dramatically. it’s very bad news how much of India is run as informal service sector with firm size <3 people
We are seeing emergent signs that AI is driving business formations.
We also think the worst for firm birth-death model is over.
As long as the Fed is willing (I like Mary Daly’s framing—what the Fed decides to do could either fan or choke a 90s style productivity boom) this trend could continue and we see more sustained labor productivity increase next year.
Full piece on @TheTerminal :