Connect with us

Business News

Remember when people occupied Wall Street? Supposedly Silicon Valley is next

(BUSINESS NEWS) Based on quick and successful economic growth compared to the rest of the country, strategists are predicting the occupy movement will eventually wind up in Silicon Valley.

Published

on

tax bill silicon

Trouble on the horizon

A new Bank of America report has some very worrying news for the tech industry. Titled “Occupy Silicon Valley,” the report is a sort of socio-economic risk analysis study that warns of troubles ahead.

bar
Except, the troubles will not come from foreign hackers, or an encroaching federal government, but from Main Street America.

Occupy Silicon Valley

The report highlights how the hugely profitable tech industry’s sheer wealth juxtaposes uneasily with the sluggish growth of rest of the economy. Huge salaries, unthinkable bonuses and a very wide income starkly contrast with teachers, police officers, and young tech engineers.

Backlash to this growing inequality, now largely directed at politicians in DC and investment bankers in Wall Street, will soon engulf the Valley billionaires and their tech minions, the study warns.

Michael Hartnett, chief investment strategist with Bank of America, put the issue in perspective by noting that the market values of tech giants already surpass the gross domestic product of large cities. “Google is bigger than Chicago[‘s GDP], Amazon is bigger than Washington[‘s GDP],” he wrote.

American companies also far outstrip the value of its competitors internationally.

For example, just Google and Apple put together is worth more than the combined market value of Japanese and Eurozone financial companies.

eurozone
via BofAML Global Investment Strategy

The future is only going to get brighter

In fact, by all accounts we are on the verge of a revolution in AI that would unleash more automation—from self-driven cars to Wall Street betting bots to auto-coding. Seismic shifts will disrupt jobs on a massive scale, and even high skilled laborers are at risk of losing means of employment. Wealth would further flow to the hands of a few.

The stock market reflects this bright future: NASDAQ Internet Index is up 25.6 percent this year versus about 7 percent for the Standard & Poor’s 500 index.

The report predicts that this scenario would “ultimately lead to populist calls for redistribution of the increasingly concentrated wealth of Silicon Valley as the gap between tech capital and human capital grows ever wider.”

Here and there

For now, the protests have been scattered and momentary flairs—the Google-bus blockades, protests against Uber’s presence in Oakland, and so on.

There has also been populist backlash against the tech industry for its lack of accountability.

Many see this as the struggle between the new, modern America versus the old, backward America. Silicon Valley vs. Ohio Valley. However, that scenario will change soon. For worse, much worse.

An already highly area of tension between the long-term residents and new tech wave is over the issue of rent control. Voters in Mountain View (Google’s headquarters) and Richmond approved rent- and eviction-control measures in November. Santa Rosa will vote in June. San Jose’s City Council voted last month to implement eviction controls, and Pacifica’s council approved a temporary rent- and eviction-control ordinance that will take effect Wednesday.

Rent control may necessitate higher taxes, which would mean policy responses inimical to the tech interests: “When the government is short of revenue, they will look at places that have a lot of revenue. We know where a lot of that is right now,” the report notes.

Round two

The disconnect between an S&P 500 led by technology and the global economy “is ultimately unsustainable,” warns the report. Occupy Silicon Valley may not be far away.

Whether the protests lead to useful policy prescriptions is an entirely different question.

#SiliconValley

Barnil is a Staff Writer at The American Genius. With a Master's Degree in International Relations, Barnil is a Research Assistant at UT, Austin. When he hikes, he falls. When he swims, he sinks. When he drives, others honk. But when he writes, people read.

Continue Reading
Advertisement
1 Comment

1 Comment

  1. Bryan See

    June 23, 2017 at 12:59 pm

    I think these protests will be made by Donald Trump supporters, the chunk of Americans that has been whipped into frenzy by Brexit, Trump’s appeal to reduced circumstances and a ripple effect made by a clear signal sent by the absurd episodes on Russia’s Phobos-Grunt mission and Russavia from 2012 to 2015. They will surely use violence at anyone who’s making science and tech progress, in addition to holding placards saying messages ranging from “computers complicated the world very greatly” to “digital is no good” to simply “that’s it for science and tech” (which means “it’s over for [and the end of] science and tech”). Their clear targets are Silicon Valley, as discussed in this article, and other places like it, be it General Dynamics, the contractor responsible for the Navy EMALS system which drew the angers of Trump and Russian President Vladimir Putin.

    These neo-Luddites, or modern-day Luddites will surely band together to express their anger and unleash their violence, helping to save Putin; it is only a matter of time before this anti-tech/anti-science backlash goes global. It is interesting to note that Putin has no idea about Silicon Valley, but its destruction, through Occupy Silicon Valley, could benefit him because not only he’s a technophobe, just like Trump, he wanted to rule the world with money as predicted by right-wing and reactionary and xenophobic Bulgarian mystic Baba Vanga, who predicted about Russia and Putin himself that when the permafrost thaws and floods come, nothing will survive on Earth but Russia.

    “Everything will melt away like ice yet the glories of Vladimir, the glory of Russia, are the only things that will remain. Russia will not only survive, it will dominate the world.”

    Also, during her meeting with writer Valentin Sidorov, Vanga said: “All will thaw, as if ice, only one remain untouched – Vladimir’s glory, glory of Russia. Too much it is brought in a victim. Nobody can stop Russia. All will be removed by her from the way and not only will be kept, but also becomes the lord of the world.”

    Right-wing religious fanatic Edgar Cayce had a similar message related by rabid racist Vanga and he mentioned the possibility of third world war resulting in troubles related to Egypt, Turkey, Syria and Libya.

    “In Russia there comes the hope of the world, not as that sometimes termed of the communistic, or Bolshevik, no; but freedom, freedom! That each man will live for his fellow man! The principle has been born. It will take years for it to be crystallised, but out of Russia comes again the hope of the world.”
    (Edgar Cayce, 1944, No. 3976-29)

    Cayce said that these events could be averted if humanity changed its behavior – but in the 70 years since his prediction, mankind has not changed at all. Thus, World War III is on the way, and it may signal the end of life on earth.

    Cayce foresaw the third world war even before the end of the second world war. He spoke of strife arising near the Davis Straits, and in Libya, and in Egypt, in Ankara, and in Syria; through the straits around those areas above Australia, in the Indian Ocean and the Persian Gulf.

    Horacio Villegas foresaw such conflict. He reportedly told the Daily Star: “The main message that people need to know to be prepared is that between May 13th and October 13, 2017, this war will occur and be over with much devastation, shock and death!”

    All of these, coupled with anti-research and anti-science budget cuts, and propaganda from Trump and Putin, as well as a third World War, will likely stop humankind from achieving milestones, like landing an astronaut on Mars. Therefore, the phrase “Everything will melt away like ice” is something that is warned about by many, including SpaceX CEO Elon Musk, filmmaker Michael Moore and Wikipedia user BatteryIncluded.

    In 2014, asked in an interview whether he would visit Mars in his lifetime, Musk said “I hope so, if I don’t get assassinated by like, some Russian assassin, which is not out of the question. They’ve done that before!”

    In his GQ interview in the following year, he noted there is a window of opportunity when the technology necessary to send astronauts to Mars becomes available; however, it could rapidly be shut down because of religious extremism, anti-technology movements or the eruption of a third World War.

    He commented, “I don’t think we can discount the possibility of a third World War. You know, in 1912 they were proclaiming a new age of peace and prosperity, saying that it was a golden age, war was over. And then you had World War I followed by World War II followed by the Cold War. So I think we need to acknowledge that there’s certainly a possibility of a third World War, and if that does occur it could be far worse than anything that’s happened before. Let’s say nuclear weapons are used. I mean, there could be a very powerful social movement that’s anti-technology. There’s also growth in religious extremism. Like, I mean, does ISIS grow…?”

    Musk sees the colonization of Mars as a moral duty to ensure the survival of mankind the same way a USB drive is meant to preserve data in case a computer crashes. A Martian colony could guarantee humanity survives in the event of a debacle that destroys life on Earth. “You back up your hard drive. Maybe we should back up life, too?” he asked.

    Michael Moore condemned, “Trump just committed a crime against humanity. This admitted predator has now expanded his predatory acts to the entire planet. USA to Earth: F— YOU. America First! Earth Last! My name is Michael Moore. I am an American. And I live in a Rogue State.”

    He also stated, “Historians in the near future (because that may be the only future we have) will mark today, March 28, 2017, as the day the extinction of human life on earth began, thanks 2 Donald Trump.”

    BatteryIncluded once said, “Now that Trump has been elected, it doesn’t much matter … human civilization on this planet is soon over.”

Leave a Reply

Your email address will not be published.

Business News

Keep your company’s operations lean by following these proven strategies

(BUSINESS) Keeping your operations lean means more than saving money, it means accomplishing more in less time.

Published

on

keeping operations lean

The past two years have been challenging, not just economically, but also politically and socially as well. While it would be nice to think that things are looking up, in reality, the problems never end. Taking a minimalist approach to your business, AKA keeping it lean, can help you weather the future to be more successful.

Here are some tips to help you trim the fat without putting profits above people.

Automate processes

Artificial intelligence frees up human resources. AI can manage many routine elements of your business, giving your team time to focus on important tasks that can’t be delegated to machines. This challenges your top performers to function at higher levels, which can only benefit your business.

Consider remote working

Whether you rent or own your property, it’s expensive to keep an office open. As we learned in the pandemic, many jobs can be done just as effectively from home as the workplace. Going remote can save you money, even if you help your team outfit their home office for safety and efficiency.

In today’s world, many are opting to completely shutter office doors, but you may be able to save money by using less space or renting out some of your office space.

Review your systems to find the fat

As your business grows (or downsizes), your systems need to change to fit how you work. Are there places where you can save money? If you’re ordering more, you may be able to ask vendors for discounts. Look for ways to bring down costs.

Talk to your team about where their workflow suffers and find solutions. An annual review through your budget with an eye on saving money can help you find those wasted dollars.

Find the balance

Operating lean doesn’t mean just saving money. It can also mean that you look at your time when deciding to pay for services. The point is to be as efficient as possible with your resources and systems, while maintaining customer service and safety. When you operate in a lean way, it sets your business up for success.

Continue Reading

Business News

How to apply to be on a Board of Directors

(BUSINESS) What do you need to think about and explore if you want to apply for a Board of Directors? Here’s a quick rundown of what, why, and when.

Published

on

board of directors

What?
What does a Board of Directors do? Investopedia explains “A board of directors (B of D) is an elected group of individuals that represent shareholders. The board is a governing body that typically meets at regular intervals to set policies for corporate management and oversight. Every public company must have a board of directors. Some private and nonprofit organizations also have a board of directors.”

Why?
It is time to have a diverse representation of thoughts, values and insights from intelligently minded people that can give you the intel you need to move forward – as they don’t have quite the same vested interests as you.

We have become the nation that works like a machine. Day in and day out we are consumed by our work (and have easy access to it with our smartphones). We do volunteer and participate in extra-curricular activities, but it’s possible that many of us have never understood or considered joining a Board of Directors. There’s a new wave of Gen Xers and Millennials that have plenty of years of life and work experience + insights that this might be the time to resurrect (or invigorate) interest.

Harvard Business Review shared a great article about identifying the FIVE key areas you would want to consider growing your knowledge if you want to join a board:

1. Financial – You need to be able to speak in numbers.
2. Strategic – You want to be able to speak to how to be strategic even if you know the numbers.
3. Relational – This is where communication is key – understanding what you want to share with others and what they are sharing with you. This is very different than being on the Operational side of things.
4. Role – You must be able to be clear and add value in your time allotted – and know where you especially add value from your skills, experiences and strengths.
5. Cultural – You must contribute the feeling that Executives can come forward to seek advice even if things aren’t going well and create that culture of collaboration.

As Charlotte Valeur, a Danish-born former investment banker who has chaired three international companies and now leads the UK’s Institute of Directors, says, “We need to help new participants from under-represented groups to develop the confidence of working on boards and to come to know that” – while boardroom capital does take effort to build – “this is not rocket science.

When?
NOW! The time is now for all of us to get involved in helping to create a brighter future for organizations and businesses that we care about (including if they are our own business – you may want to create a Board of Directors).

The Harvard Business Review gave great explanations of the need to diversify those that have been on the Boards to continue to strive to better represent our population as a whole. Are you ready to take on this challenge? We need you.

Continue Reading

Business News

Average age of successful startup founders is 45, but stop stereotyping

(BUSINESS) Our culture glorifies (yet condemns?) startup founders as rich 20-somethings in hoodies, but some are a totally different type.

Published

on

startup founders average age is 45

There’s a common misconception that startups are riddled with semi-nerdy, 20-something white dudes who do nothing but sip Nitro Brews and walk around the open office showing off the hoodie they wore yesterday. It turns out that it’s extremely rare that startup offices resemble The Social Network.

However, the academic backdrop for the real social network story (AKA Harvard), produced statistics that will serve to put the aforementioned misconception to rest. According to the Harvard Business Review, the average age of people who founded the highest-growth startups is 45. Say what?! A full-fledged adult?!

In fact, aside from the age category of 60 and over, ages 29 and younger were the smallest group of founders that are responsible for heading the highest-growth startups. I guess you can accomplish a lot when you’re not riding around the office on a scooter all day.

The study also found that older entrepreneurs are more likely to succeed. The probability of extreme startup success rises with age, at least until the late 50s. It was found that work experience plays an important role.

Many will argue, “Well, what about someone like Steve Jobs?” You could easily argue right back that it took Jobs until the age of 52 to create Apple’s most profitable product – the iPhone.

The study continues to answer questions like, why do Venture Capitalist investors bet on young founders? This goes back to the misconception at the start, and there’s a notion that youth is the key for successful entrepreneurship. Wrong.

There is also the idea that younger entrepreneurs are likely working with less financial options, so it may be common for them to take something from a VC at a lower price. As a result, they could be viewed as more of a bargain than older founders.

“The next step for researchers is to explore what exactly explains the advantage of middle-aged founders,” writes Pierre Azoulay, et al. “For example, is it due to greater access to financial resources, deeper social networks, or certain forms of experience? In the meantime, it appears that advancing age is a powerful feature, not a bug, for starting the most successful firms.”

Continue Reading
Advertisement

Our Great Partners

The
American Genius
news neatly in your inbox

Subscribe to our mailing list for news sent straight to your email inbox.

Emerging Stories

Get The American Genius
neatly in your inbox

Subscribe to get business and tech updates, breaking stories, and more!