[rayiner]

Par for course: https://www.epsilontheory.com/gell-mann-amnesia/

It’s no surprise that after a decade of loose monetary policy, there’s a shakeout in capital-intensive industries like tech. That’s painful in the short term, but it’s a good thing overall. It’s necessary for capital to be better allocated across the economy.

[itsdrewmiller]

Tech is one of the least capital-intensive industries, no?

[rayiner]

Paying developers to build new products is a capital expenditure.

[zeroonetwothree]

Typically employees are considered operating expenditure, not capital expenditure.

[wmorgan]

The term of art is "capitalized labor." For example, this is from Microsoft's accounting policies:

> Costs incurred internally in researching and developing a computer software product are charged to expense until technological feasibility has been established for the product. Once technological feasibility is established, software costs are capitalized until the product is available for general release to customers.

Then later

> The amortization of these costs is included in cost of revenue over the estimated life of the products.

https://www.microsoft.com/investor/reports/ar21/index.html