A look at the effects of large tech companies on local economies, based on the author’s experience living in San Francisco.
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The ‘Big Tech’ Arrival
In recent years, there has been a big influx of ‘Big Tech’ companies arriving in town. These companies are typically from the Silicon Valley area, and are coming to set up shop in small towns and cities all across America. This has been a controversial topic, with many people arguing that these companies are taking advantage of the smaller towns.
The effect on small businesses
When large tech companies move into small towns, the effect on local businesses can be both positive and negative.
On the one hand, the influx of new people and money can help to boost the local economy. Tech workers tend to be relatively high earners, so they can help to drive up prices and demand for goods and services. This can be a particular boon for luxury or niche businesses that cater to higher-end consumers.
However, small businesses can also be negatively affected by the arrival of big tech The competition from well-funded and deeply entrenched corporate giants can be difficult to overcome, especially for businesses that are already struggling. And as rents and property values go up, smaller businesses may find themselves priced out of the market entirely.
Ultimately, whether big tech is good or bad for small businesses depends on the individual circumstances of each case. But there’s no doubt that the arrival of these companies can have a major impact on communities, for better or for worse.
The effect on the local economy
The arrival of a big tech company in a small town can have a profound effect on the local economy. The new company brings with it high-paying jobs and an influx of money into the community. This can lead to increased economic activity and a rise in property values.
The downside of this economic boom is that it can often lead to gentrification, as the new jobs and money drive up the cost of living in the area. This can force long-time residents out of their homes and neighborhoods, as they can no longer afford to live there.
The big tech companies also tend to bring with them a workforce that is mostly white and male. This can create tension in the community, as the new employees may not be familiar with or respectful of the local culture.
Overall, the arrival of a big tech company can be a mixed blessing for a small town. While it can bring new jobs and money into the community, it can also lead to gentrification and other social problems.
The Pros of Big Tech
There are many benefits to having big tech companies in your town. big tech companies bring high-paying jobs, economic growth, and new technologies. They also tend to be good corporate citizens, supporting local causes and investing in the community. However, not everyone agrees that the pros of big tech outweigh the cons.
The increase in jobs
The most obvious pro of having Big Tech come to town is the increase in jobs. For every one job that is created by a Big Tech company, it is estimated that five more are indirectly created in the surrounding area. This is because these companies bring in highly skilled workers from all over the world, who then go on to spend their money in the local economy on things like housing, food, and entertainment. In addition, these companies also tend to invest heavily in the local community, often donating millions of dollars to local charities and non-profit organizations.
The investment in the community
When big tech comes to town, they don’t just bring their jobs, they bring their philanthropy as well. For example, Google has donated millions of dollars to Bay Area organizations like the Science Museum and the San Francisco Ballet. They’ve also given away free computer science classes to high school students and free wifi to public parks. And they’re not the only ones — Amazon has also given away free computer science classes to high school students in Seattle, and Facebook has donated to Silicon Valley nonprofits like the Boys & Girls Club.
These big tech companies have not only brought jobs and investment to the communities they’ve chosen as their homes, they’ve also brought their philanthropy. And that’s something that should be celebrated.
The Cons of Big Tech
Big tech companies can bring a lot of good to a town: jobs, investments, and new development. But with that good often comes some bad. Big tech can drive up prices, displace long-time residents, and lead to more traffic and congestion. Let’s take a closer look at the cons of big tech companies coming to town.
The gentrification of the community
When big tech companies move into a community, they often bring with them an influx of highly paid workers. This can lead to increased competition for housing and other amenities, and can drive up the cost of living in the area. This can price out lower-income residents and lead to the gentrification of the community.
The loss of local character
When large tech companies move into a town or city, they often bring with them a new culture that can be at odds with the local community. This can lead to the loss of local character as businesses close and residents move away.
In addition, big tech companies often benefit from tax breaks and other incentives that are not available to local businesses. This can put small businesses at a disadvantage and make it difficult for them to compete.
There is also the concern that big tech companies will monopolize the market and drive out competition. This could lead to higher prices and fewer choices for consumers.