Paul Kedrosky says the demand for engineers is super hot right now in Silicon Valley--as hot as 1998-99.
As I discussed below, the skyrocketing wages in Silicon Valley are a result of the fact that software engineers in the wage sector are similar to what oil is in the natural resource sector, a product/wage that is in demand across the structure of production. Wages will eventually increase and employment will improve across the economy (in an inflation manipulated way) as commodity prices have increased beyond oil, but it is going to mean price inflation across the board.
The software engineers are ahead of the price inflation curve. They are benefiting from the money printing. If you are a librarian, teacher or work at McDonald's, you will end up with a price increase way down the road. You will lose to price inflation. If you are on a fixed income, you will be destroyed by price inflation, start thinking now about how you are going to cutback.
Kedrosky's comments on the wage boom in Silicon Valley are here.
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