The extended period of low interest rates had made it very easy for tech firms to raise capital. From an investor standpoint, the cheap cost of money made riskier investments more appealing.
As the Fed has raised rates to tame inflation, investors have pulled back substantially. In my personal experience (a company I started lost its investor) I think they over-corrected, but you could call me biased.
But basically, this is capitalism working the way it should: correcting and sometimes over-correcting. As capitalism adjusts, individuals experience adverse outcomes. This is a good thing, right?
Under a socialist or communist regime, the government would step in to prevent those individual adverse outcomes. Think of how much money China invests on unnecessary infrastructure projects to prop up local economies.
The fact that the Biden Administration is letting this happen with taking action demonstrates how silly it is to call his administration socialist or communist.
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