Facebook and Google Create New Homeless People in Silicon Valley in 2016

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They may not be sleeping on park benches, but they’ll never be able to afford a house in Silicon Valley. That’s because the household-word high-tech companies (Apple, Facebook, Google, et al) in the San Francisco Bay Area are adding jobs but no one is adding commensurate numbers of housing units, and the prices of homes is skyrocketing.

The iconic independent bookstore in Menlo Park, Kepler’s Books, and Peninsula Arts & Letters, sponsored a well-attended public forum, “Housing Crisis Stories”, on August 18, 2016. The motivation for the meeting was the disconnect between the huge number of new jobs being created by the giant high-tech companies like Facebook and Google and the tiny number of new housing units being created. According to the local paper, The Almanac (which covers the tony cities of Atherton, Menlo Park, Portola Valley, and Woodside), San Mateo County added 55,000 jobs but only 2,000 housing units (homes plus apartments) between 2010 and 2014. The main source of new jobs is these high-tech companies, but other real estate development is also favoring offices at the expense of housing units.

Except for me (in my TechnologyBloopers persona), who dealt with the new jobs, everyone dealt with the housing shortage. There appeared to be NO representatives from the nearby, Menlo Park-based, Facebook. Many of the attendees were either personally the victims of the rapidly-rising home prices or apartment rents, or were recounting stories of other victims. The poster child for these victims is a Palo Alto planning commissioner—a tech lawyer with a software engineer husband—who is resigning and moving to Santa Cruz because they can’t afford to live in Palo Alto and raise a family there.

Unfortunately, individually they have no power to escape their victimhoods. They will have to band together to elect officials who DO have some power. City Councils in those cities affected will need to be very proactive in forcing the tech companies and real estate developers to deal with the housing shortage. And neighboring cities need to cooperate with each other so that jobs created in one city (which result in revenue both to that city government and to retailers in that city) do not force other cities to deal with housing those new employees.

The problem seems to be a failure to optimize the OVERALL combination of jobs and housing. The technology companies are a big part of the problem and they need to be a big part of the solution. And one way those companies, at least the ones like Facebook and Google whose principal activity is software development (which can be done most anyplace), can be a part of the solution is for them to locate large portions of their staff in regional offices in cities far away from Silicon Valley.

There were some creative solutions mentioned, which would help add housing units, IF the groups concerned would cooperate to change the rules for zoning and construction. One was to build several floors of housing above parking garages. Another was to replace single-story strip malls with multi-level buildings having the retailers at ground levels and housing at the higher levels.

There was one additional issue that seems unique to Palo Alto and Menlo Park (among the cities on the San Francisco Peninsula), namely the gentrification of (formerly) low-priced residential housing in East Palo Alto and East Menlo Park, and the related issues of racism because of the relatively high percentage of people of color living in those cities. Fortunately, those cities were well-represented in the meeting, and hopefully their inputs will continue to be carefully considered as solutions to the jobs/housing are implemented.

N Y Times: “Let’s Get Back to Work”

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“The Lord Giveth and the Lord Taketh Away” is a truly flexible and useful concept. We can replace “Lord” by such notions as “Technology” or “Internet” or “Mobile Devices” or a whole host of other products and services. And those products and services can be used to teach us, to inform us, to entertain us, etc. How valuable they are depends on the objectives of the individual or group in question. We’d guess that a large fraction of the folks who read the New York Times either work pretty hard or respect others who do work pretty hard. On the other hand those who spend a lot of  time looking at or posting to Tumblr probably are at the other end of the spectrum, as Tumblr itself serves up such suggestions as “5 ways to waste the rest of the day” (by the way, you can find lots of OTHER folks using that phrase when you surf) and counsels its members that “work can wait”, presumably while you read or write posts on Tumblr.

To put this in perspective we took a look at how Americans spent their day in 2014, thanks to some detailed data from the Bureau of Labor Statistics (BLS). Of the 24.00 hours in a day, we spend 10.75 hours taking care of basic needs (sleeping, other personal care, and eating and drinking), 3.59 hours working or doing work-related activities, a meager 0.42 hours being educated (a low average because the majority of Americans are not enrolled in educational institutions), a whopping 5.30 hours on leisure and sports (which includes 2.82 hours watching television), and a modest 0.14 hours communicating (telephone, email, and snailmail).

But even the most casual observer would likely object to the low communicating figure from the BLS because everywhere you look people are peering into their smartphones. One study found that smartphone users spend two hours each day using those devices. And what are they doing with those phones? It depends on whose statistics you believe, but it is interesting to note that it’s not all entertainment. And it is even more interesting to realize that a smartphone enables its user to seamlessly shift between work-related and personal activities, so they aren’t all just wasting the rest of the day a la Tumblr. Whew, the American economy may not be in danger!

“Anti-Social Networks”?

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The U.S. Supreme Court has just overturned the conviction of a man who posted on Facebook (in rap music form!) a set of threats to his estranged wife, law enforcement agencies, and local elementary schools, as described in The Wall Street Journal. This legal system reversal was justified on the basis that the earlier jury had not considered the man’s state of mind when he made these posts. Huh? Is this a journalistic or a legal error? Common sense would strongly suggest that his state of mind was murderous. Whether he would actually follow through and commit the heinous acts is the question, and it appeared that the earlier jury thought he would … though his couching his threats in rap music might suggest some softer attitude (unless it was gangsta rap). (And likely the longer he had been abused by the divorce courts, politically-motivated judges, and the like, the more likely he would have expressed himself in strong terms.)

This event seems to be one of an increasingly frequent series that takes the notion of freedom of speech to an extreme. And it underlines the ease with which anyone, sane or crazy, serious or just kidding, etc. can express their views to giant audiences via social networks such as Facebook. Facebook seems to have escaped unscathed this time, but if enough such events continue to occur, they may not escape over the longer term. And while the issues are not identical, hasn’t Google been forced to “forget” large quantities of search results in Europe? Pressure for reforms can only get more intense.