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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.

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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.

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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.

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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.”

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Business News

Supreme Court okays trademarking for ‘generic’ name URLs

(BUSINESS NEWS) Generic name trademarks have helped to stave off monopolies of broad products and services, but the Supreme Court just ruled that generic company names like Booking.com, can now be trademarked.

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For years, The United States Patent and Trademark Office has denied rights to names termed as “generic.” This was previously used to prevent generic terms from monopolizing a section of the market. It has prevented many companies from doing that as well.

However, as we move into the 21st century we begin to see things that may not be so cut and dry. As usual life gets messy and things are far more grey than they previously have been.

Recently, the US Supreme Court ruled that website names are eligible for a change to the previous trademark rules. The website that pushed for this privilege first, Booking.com that is owned by Booking Holdings Inc., argued that they needed this ruling to stop consumers from following copycats down a rabbit hole and away from their business.

The decision, heavily weighted at 8-1, gives Booking.com, nationwide legal protection against competing companies trademarks.

A remark released later by Justice Ruth Bader Ginsburg and the Supreme Court states, “We have no cause to deny Booking.com the same benefits Congress accorded other marks qualifying as nongeneric.” An argument quoted from the decision continues as since, “‘Booking.com’ is not a generic name to consumers, it is not generic.”

This stance, taken by the majority, exemplifies a firm position on the rights of the individual companies’ abilities to identify themselves as they see fit.

The lone dissenting vote coming from Justice Stephen Breyer who argued that he fears that this decision “will lead to a proliferation of ‘generic.com’ marks, granting their owners a monopoly over a zone of useful, easy-to-remember domains.”

Honestly, if you can’t come up with your own domain that either incorporates, but doesn’t copy, or gets your point across without being too generic, you may need to hire a PR person.

This move forward from the Supreme Court opens up a lot of possibilities for people to be creative with their businesses. If generic and simple names will be the norm, then people will have to think outside the box in the future. Bring on the challenges.

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New company beats Amazon with next morning delivery?

(BUSINESS NEWS) Amazon has a new competitor in South Korea: Coupang, with faster shipping than Prime.

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What if I told you Amazon Prime’s, 1-3 day guaranteed delivery time isn’t the fastest e-commerce service the world has to offer? You would think I’m lying right?

Coupang, one of the world’s fastest delivery services located in South Korea, allows you to order any item, anytime before midnight, promising that it will be at your doorstep by 7am! (I wasn’t lying!) With 70% of its employees living within a 10 minute radius of a Coupang center, 80% of residents residing in populated cities and 95% of it’s population owning a smartphone, South Korea has become the perfect e-commerce epicenter. Coupang employees over 10,000 people who together deliver 99.3% of all orders within 24 hours. Imagine it’s Tuesday night, you’re falling asleep and suddenly remember you forgot to get your wife a present for her 50th birthday tomorrow. You have two options: accept your fate of being put in the dog house for three long weeks, or quickly order a few great items off Coupang’s website that’ll be delivered BEFORE she even wakes up!

Like Amazon, Coupang allows its customers to create a profile, store desired products in a list, and check out using your saved payment method. Half of South Korea’s total population of 51.6 million has installed Coupang’s app with a surge of people trying Coupang for the first time during stay at home orders due to the Coronavirus pandemic. The company struggled to meet fulfillment demands, especially those including PPE, household cleaning products, and children’s necessities. While many companies are struggling to stay afloat, Coupang is quickly adapting to meet consumer demands. In March, the company opened a new logistics center to expand its overnight/same day delivery services and is currently working to reach an even broader population.

Believe it or not, right before Coupang received a $2 Billion investment from SoftBanks, its founder, Kim Bom debated walking away from it all. Bom founded the company in 2010, receiving the investment in 2018 and is expected to pursue an IPO by the end of 2020. So for all of you entrepreneurs wondering if you should give up on that decade long dream…DON’T. Coupang went from selling a few hundred items each day to 3.3 million. Now that’s what you call entrepreneurism!

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Business News

Google plans to pay publishers for content (a little too late)?

(BUSINESS NEWS) Google will finally pay publishers for news, but only a few, and they have to meet Google standards.

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I mean…could you get any greedier Google? (Chandler Bings voice).

After years and years of pressure and complaints from publishers that Google’s search feed doesn’t properly recognize them or the news they work so hard to report, Google has finally announced that they will begin to pay publishers for content. But only some.

WHAT A LOAD OF BS.

According to the News Media Alliance, Google profited 4.7 BILLION in 2019 as a search engine for the news industry. So now, not only is Google fleecing its content providers and the writers who are working to create material for them, but it’s quite likely that Google’s algorithm is pushing paid news to the top of its search feed. What does this mean for users? It means that for one, you will see what they want you to see, but most importantly, it means that Google HAS the money to pay its publishers but chooses not too!

Google’s announcement to start paying publishers excludes all publishers outside Brazil, Germany, and Australia. Even within the countries that Google closed a deal with, there are many that do not meet its “high quality content” requirement for a paid position. The problem with all this nonsense is that we stopped letting the news come from others like us, and instead, according to the U.S News Media Alliance, the news is entirely owned by a handful of companies. You may have 635 channels on your TV, but if you google…or maybe you should duck duck go it, you’ll find that all those channels lead back to one huge organization.

SO WHAT THE HELL IS GOING ON?

Google has definitely been pressured to make some big changes, and while paying publishers is a good first step in the right direction, is it enough to make up for years of damage?

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