• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

After forcing workers back to the office, Goldman Sachs and JPMorgan Chase are now letting their staff work remotely—but only for the World Cup

2

Markets tumble worldwide as Fed resets expectations: $400 billion wiped off SpaceX stock

3

Current price of oil as of June 23, 2026

1

After forcing workers back to the office, Goldman Sachs and JPMorgan Chase are now letting their staff work remotely—but only for the World Cup

2

Markets tumble worldwide as Fed resets expectations: $400 billion wiped off SpaceX stock

3

Current price of oil as of June 23, 2026
FinanceEconomy

Is Silicon Valley Bad for the American Worker?

By
Chris Matthews
Chris Matthews
Down Arrow Button Icon
By
Chris Matthews
Chris Matthews
Down Arrow Button Icon
October 13, 2016, 4:59 PM ET
Facebook
Thomas Trutschel Photothek — Getty Images
Add Fortune on Google for similar content.

Ever since the Great Recession, analysts and economy-watchers have been looking for a culprit to blame for America’s slow-to-recover job market.

One popular scapegoat: Silicon Valley.

That’s the target of an article published in the Wall Street Journal on Thursday which argues that the recent tech boom has created lots of distractions, but “not enough jobs.” Writers Jon Hilsenrath and Bob Davis allege that while “the technology revolution has delivered Google searches, Facebook friends, iPhone apps, Twitter rants, and shopping for almost anything on Amazon, all in the past decade and a half” it hasn’t delivered many jobs.

For instance, Google and Facebook have a combined market value of double that of Microsoft, yet they collectively employ only third of the employees of the software giant.

The implication is that America’s most innovative and important industry is enriching a few Americans, and that wealth is not filtering down to average Americans. They argue that, “The gap between what the tech boom promised and then delivered is another source of the rumbling national discontent that powered the rise this year of political outsiders Donald Trump and Bernie Sanders.”

Setting aside the argument of whether or not Donald Trump’s rise is primarily motivated by economic anxiety (polls show wealthy Americans support him at higher rates than the poor), it’s an odd time to be making this argument. After all, the unemployment rate has fallen to 5%, below its post-war average. Meanwhile the Census Bureau has reported that median income in 2015 grew by 5.2%, the largest increase in the history of the Census Bureau’s survey.

To be sure, the American economy has a ways to go before it recovers from the damage wrought by the Great Recession, as median pay remains below its peak in 2007. But the Journal article never explains why this should be specifically blamed on the tech industry.

It’s true that the technology sector employs fewer people for dollar of revenue than others, and that this is a concerning trend for those who believe that power and wealth should be more easily distributed through society. But there’s nothing particularly unique about the technology industry shifting jobs overseas, or the fact that tech workers are seeing a lower share of profits today than they were a generation ago. In fact, if you look at the top companies in terms of profit per employee, you’ll see a mix of industries. Sure, Apple comes in at the top, but the second most efficient company is 21st Century Fox, yet we don’t hear much about the dearth of employment in media.

Furthermore, Hilsenrath and Davis don’t address the solutions to the thinning out of job opportunities in the technology sector that have been proposed in recent years. Back in 2013, futurist Jaron Lanier published an entire book discussing the problem of concentrated power in Silicon Valley and why profits and benefits from their activities aren’t being captured by the broader public. He pointed out, however, that companies like Facebook and Google aren’t valuable at all without the participation of users, meaning that with the right legal and financial structure, these companies could be forced to compensate users, in small micropayments, for the value users add to those products.

But 2013 was a very different climate employment-wise than 2016. Although there remains too much underemployment in America, the employment situation is generally pretty good in terms of the number of jobs. More jobs would certainly drive up wages and living standards, but it helps to identify that the problem is that wages have lagged behind productivity growth, not that the technology sector is uniquely a sector that relies on much capital but little labor.

So what could help reverse this problem? There are plenty of good ideas on the right and the left that are worth trying. On the supply side, we should seriously consider a recent proposal by former Obama Administration official Cass Sunstein to ditch unnecessary regulations, while state and local governments should work hard to eliminate zoning requirements that slow growth in some of our most vibrant cities. On the demand side, there’s reason to believe that higher minimum wages helped contribute to wage gains last year. What’s more, passing laws that strengthen unions in non-tradeable businesses like retail and hospitality could do much to strengthen the bargaining power of those workers.

But here’s the big picture: If we really want to get the economy working for all, as Clinton and Trump claim, we need to take a holistic approach to the problem of sluggish wage growth and stagnant living standards. Just picking on Facebook or Google or Twitter or any one else in Silicon Valley is not going to do it.

About the Author
By Chris Matthews
See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in Finance

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Finance

Sarah Youngwood, EVP and CFO at Nasdaq.
C-SuiteFinance
Inside Nasdaq CFO Sarah Youngwood’s AI playbook
By Sheryl EstradaJune 24, 2026
8 minutes ago
Top CD rates today, June 24, 2026: Lock in up to up to 4.40%
Personal FinanceCertificates of Deposit (CDs)
Top CD rates today, June 24, 2026: Lock in up to up to 4.40%
By Glen Luke FlanaganJune 24, 2026
37 minutes ago
Today’s top high-yield savings rates: Up to 5.00% on June 24, 2026
Personal FinanceSavings accounts
Today’s top high-yield savings rates: Up to 5.00% on June 24, 2026
By Glen Luke FlanaganJune 24, 2026
37 minutes ago
You can ignore Trump’s threats to leave NATO: Pimco says they’re a ‘paper tiger’
EconomyMarkets
You can ignore Trump’s threats to leave NATO: Pimco says they’re a ‘paper tiger’
By Jim EdwardsJune 24, 2026
54 minutes ago
Current refi mortgage rates report for June 24, 2026
Personal FinanceReal Estate
Current refi mortgage rates report for June 24, 2026
By Glen Luke FlanaganJune 24, 2026
4 hours ago
Current ARM mortgage rates report for June 24, 2026
Personal FinanceReal Estate
Current ARM mortgage rates report for June 24, 2026
By Glen Luke FlanaganJune 24, 2026
4 hours ago

Most Popular

After forcing workers back to the office, Goldman Sachs and JPMorgan Chase are now letting their staff work remotely—but only for the World Cup
Success
After forcing workers back to the office, Goldman Sachs and JPMorgan Chase are now letting their staff work remotely—but only for the World Cup
By Orianna Rosa RoyleJune 23, 2026
22 hours ago
Markets tumble worldwide as Fed resets expectations: $400 billion wiped off SpaceX stock
Banking
Markets tumble worldwide as Fed resets expectations: $400 billion wiped off SpaceX stock
By Jim EdwardsJune 23, 2026
1 day ago
Current price of oil as of June 23, 2026
Personal Finance
Current price of oil as of June 23, 2026
By Joseph HostetlerJune 23, 2026
22 hours ago
Meet the 2 men putting New York's $300 billion pension fund in play for the first time in 20 years
Investing
Meet the 2 men putting New York's $300 billion pension fund in play for the first time in 20 years
By Nick LichtenbergJune 22, 2026
2 days ago
Former U.S. Secret Service agent says bringing your authentic self to work stifles teamwork: 'You don’t get high performers, you get sloppiness'
Success
Former U.S. Secret Service agent says bringing your authentic self to work stifles teamwork: 'You don’t get high performers, you get sloppiness'
By Sydney LakeJune 21, 2026
3 days ago
Texas and Charlotte used to build huge McMansions—now they're copying the California design tricks they once mocked
Real Estate
Texas and Charlotte used to build huge McMansions—now they're copying the California design tricks they once mocked
By Sydney LakeJune 22, 2026
2 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.