It is reported that in the past few months, many investors, executives and enterprises have left San Francisco and gone to places such as Miami and Austin, Texas. Many people said they would leave San Francisco completely.
Many investors in San Francisco and londale, for example, are unable to tolerate the collapse of power lines due to the lack of legal mobility in many areas, such as San Francisco and londale. Keith rabois, a venture capitalist, calls San Francisco a city of “massive mismanagement and management.”.
Earlier this year, Elon Musk, CEO of electric car maker Tesla, attacked local epidemic regulations that caused the suspension of Tesla’s Fremont plant. Musk compared San Francisco to a team that has become complacent after winning, saying the city has lost momentum to continue to grow.
Alex, CEO of Palantir Karp wrote in the company’s IPO prospectus that they found themselves incompatible with the ethics and rhetoric of Silicon Valley, saying: “software projects in partnership with defense and intelligence agencies whose mission is to protect our security have become the focus of controversy, and companies based on paid advertising are everywhere.” This summer, the company moved its headquarters to Colorado.
Tanium, a security software start-up, has also moved its headquarters to suburban Seattle, where Orion, the company’s CEO, has moved its headquarters Hindawi, a former lifelong resident of the San Francisco Bay area, also criticized San Francisco for “serious governance problems.” he also pointed out that the work at home rule caused by the epidemic has made many Tanium employees move to other cities, where they often feel “happier.”.
Today, housing rents in San Francisco are plummeting, and after years of extreme scarcity, the stock of homes in San Francisco is rising. Moreover, although the area is extremely active in the shutdown, it has not succeeded in stopping the spread of the epidemic. At present, California is one of the areas with the most serious infection rate of the new crown in the United States. Hospitals have been overwhelmed. At the same time, under the influence of the epidemic, local businesses have also been severely damaged.
My personal opinion
People who have never lived here should be aware of the following:
Large technology companies can be called “deeply rooted” here. Google’s parent companies, alphabet and salesforce, employ about 30000 people in the San Francisco Bay area and have built hundreds of thousands of square feet of office space in San Francisco alone. Alphabet is in the process of a massive redevelopment of downtown San Jose and has promised to invest $1 billion to build more affordable housing in the area. Meanwhile, Apple has spent billions of dollars to build a space age office building in Cupertino, and will spend $2.5 billion on affordable housing.
While Facebook may allow its employees to work at home after the outbreak, it has also spent billions of dollars building a huge park in Menlo Park and signing a new lease in Fremont across the Bay, where Tesla’s main factory is located. These companies may seek to expand elsewhere, but after investing so much, it is almost impossible from an economic point of view to close down their business here in the short term.
Moreover, there are a large number of small-scale and recently listed technology companies, such as twilio, zoom, airbnb, doordash and pinterest, many of which have indicated their intention to stay in San Francisco. As long as they are here, they can attract many employees with entrepreneurial spirit. These companies will continue to seek financing from venture capitalists, and their offices will remain in San Francisco’s South Park and on Sandy Hill Road next to Stanford University.
What’s more, Stanford University and University of California Berkeley share are world-class well-known institutions of higher learning, with strong local network and close ties with the technology industry.
The technology industry has appropriate and limited political rights in San Francisco. In the wave of fleeing San Francisco, some said they fled because the technology industry was not valued locally and could not exercise political power to change the city.
But this is ridiculous. In 2011, San Francisco voters elected ed Lee as mayor, and his supporters include investor Ron Conway, Marissa Mayer, who will become Yahoo’s CEO in the future, and other well-known technology industry figures. Conway and Marc Benioff, CEO of salesforce, are long-term San Francisco workers with deep social and political ties and capital. Benioff, in particular, is an important supporter and contributor of a proposal in 2018 that taxes the total income of large companies and uses the tax to alleviate the problem of the homeless;
Under Lee’s leadership, San Francisco has offered payroll tax holidays to companies moving to mid market, a move that has attracted twitter, Uber, Zendesk and others. This policy has reshaped the layout of the city, but it has not solved the serious problems of vagrancy and street crime in the area.
On some minor disputes, Li also inclines to the views of the technology industry, such as whether the shuttle bus of technology enterprises should be allowed to stop at the city bus station in the morning. In December 2017, Lee died in office, replacing him with London breed, who, like Lee, is also a mayor with close ties to the technology community.
In San Francisco, the mayor’s power is limited by the board of supervisors, a City Council of 11 members, each of whom comes from a region and is elected, which gives neighborhood voters extraordinary power in urban management.
The supervisors, who supervise most of the city’s management, serve powerful voters, including civil service unions, neighborhood groups, the huge local medical industry, homeowners, renters and local “progressives”. Ironically, although they are called progressives, they vote against new development and growth and want to keep what they say “Old Jinshan”. The city also allows voters to put forward their own proposals on the ballot papers, which makes the law bizarre and often contradictory, often challenged in court, leading to problems such as enforcement.
It’s very challenging to work in such a chaotic environment. And when you threaten to leave, other cities will line up to welcome you and offer various preferential terms. Therefore, San Francisco is a livable city for many people who live here, including young creative workers who have flocked to San Francisco in the past few years for not only income, but also adventure and stimulation.
San Francisco had problems long before the technology industry came here. Critics point out that the number of homeless people in San Francisco has been too high in the past 10 years. When I first moved here in 1992, art agnos, then mayor, was dealing with the consequences of allowing hundreds of homeless people to live in the park in front of the city hall. The past seven mayors have tried various methods to solve this problem, but the effect is not good.
Other problems that have caused technology companies to flee Los Angeles are also long-standing. Frequent blackouts? In the early 2000s, a botched deregulation and market manipulation led to rolling blackouts and the ouster of the Democrat, then governor of California, grey Davis, and his replacement by Arnold Schwarzenegger. Mountain fire? As early as 1991, a fire broke out in the Auckland mountains, killing 25 people and burning thousands of houses. Corruption? Like many other big cities, this problem has existed for more than a century.
These problems do exist, and they are frustrating. If companies are dissatisfied with this and want to exit, no one will blame them.
But if people in the technology industry believe that their presence or departure will have an impact on these problems, then that is arrogance. These problems have existed in the bay area during the economic boom, but the technology industry and employees are still pouring in. So there is no reason why the same problems will shut them out when the economy booms again.
San Francisco is not New York
There’s another idea that people in New York may be able to get misunderstood, just like people in San Francisco. People moved to New York to build it.
And people come to San Francisco to find themselves.
Sometimes, looking for self means looking for wealth, but historically, San Francisco has attracted a lot of incoherent people, abandoned children and refugees from places full of intolerance and hatred. This alien mentality has been integrated into the local culture.
These outsiders sometimes form alliances or coincide with “progressives” who oppose growth. For a long time, they have been hostile to business forces, making people feel that the city has unnecessary hostility to business
The follow-up technology industry thinks that it is very special, but in this place, technology is just another form of Commerce. Like other commercial enterprises, technology enterprises have the same complaints against the same group of people in San Francisco.
No matter which side you are on, sometimes you have to move on, like leaving San Francisco, as I did in 1999, it doesn’t matter. You can come back to visit at any time, and we like the tourists who come here. We thank these enterprises for their business and hope you will come back one day. San Francisco will always be here. (Matt Rosoff)