Silicon Valley uncertain after Donald Trump wins U.S. presidency

“Donald Trump’s election victory is seen as a blow to Silicon Valley, putting the presidency in the hands of a vocal critic of several big technology companies and an advocate of policies tech executives have said could hurt the industry’s development,” Trisha Thadani reports for The Wall Street Journal. “During his campaign, Mr. Trump didn’t offer a specific plan for how he would tackle technology policy… Meanwhile, Mr. Trump’s advocacy of tighter limits on immigration and trade alarmed an industry that prizes high-skilled immigrants and gets most of its revenue from overseas.”

“The electorate’s endorsement of Mr. Trump’s populist message, which broadly blamed elites for the problems of many disaffected Americans, could also spell trouble for Silicon Valley, which has spawned companies that delivered far more in profits and stock-market valuations than they have jobs for middle-class workers,” Thadani reports. “The GOP candidate received scant support from prominent technology executives other than entrepreneur and venture capitalist Peter Thiel.”

“Alphabet enjoyed a particularly close relationship with the Obama administration and its chairman, Eric Schmidt, helped early development of Mrs. Clinton’s campaign. Mrs. Clinton’s technology policy blueprint broadly echoed the Obama administration’s, emphasizing a close relationship with the private sector,” Thadani reports. “Debates over encryption, privacy and other tech issues are likely to intensify during Mr. Trump’s presidency, which will begin as the tech industry appears on the cusp of disruptive innovations—in areas such as self-driving cars, robots and artificial intelligence—that would require new policy responses.”

“There could be a silver lining for tech companies, though. Scott Kessler of CFRA Research said Mr. Trump’s win, coupled with continued Republican control of Congress, increases the chances for changes to the tax code that could enable U.S. companies to bring home more overseas profits. U.S. companies have an estimated $2 trillion stashed overseas—including $216 billion in cash and investments held offshore by Apple as of Sept. 24,” Thadani reports. “And Mr. Trump is likely to adopt a light regulatory touch that could benefit tech businesses, said Robert Atkinson, president of the Information Technology and Innovation Foundation. A Trump administration is unlikely to expand regulatory oversight on encryption, or in areas of innovation like artificial intelligence, meaning there will be “a lot more freedom to innovate with data and algorithms, so that is very good for tech,” Mr. Atkinson said.”

Read more in the full article here.

MacDailyNews Take: Peter Thiel is certainly sitting in the catbird seat today. Eric T. Mole is not.

SEE ALSO:
Apple CEO Cook emails employees, calls for unity after Donald Trump presidential win – November 10, 2016
Markets surge, Dow hits record high after Donald Trump wins U.S. presidency – November 9, 2016
Five tech issues to watch under President Trump – November 9, 2016
Donald J. Trump elected 45th president of the United States – November 9, 2016
Apple CEO Tim Cook smartly maintained ties to GOP ahead of Trump victory – November 9, 2016
Apple could be able to pay just 10% tax to repatriate overseas profits under President Trump’s plan – November 9, 2016
Why Donald Trump bests Hillary Clinton on key tech policies – November 8, 2016
Scholars debunk claims of high-tech workers shortage, question tech industry’s ‘free pass’ – May 19, 2014

20 Comments

          1. Yawn, whatever. Blah, blah, blah. Go march in the streets and burn some cars, loser. Note that you’re the only one here still pimping a leftist agenda that LOST as big league as big league gets. Yuuuge!

            1. Presidency
            2. Senate
            3. House
            4. Supreme Court

            It’s all over, loser. Adios.

        1. Trump’s taxing problem: the end of “affordable” iPhones
          Tariff bluster or protectionist polices to bank on?

          US firms that are part of this global supply chain will pay more in tax.

          Trump has proposed to tax goods from US companies made abroad and imported with a 35 per cent levy on goods coming from Mexico. He has also talked of a 15 per cent tax on “outsourcing jobs” and an apparent further 20 per cent tax for all imported goods.

          Trump has also spoken of a new trade deal with South Korea, describing President Obama’s existing agreement as “embarrassing” and bad for the US.

          Trump has put himself forward, too, as his country’s deal negotiator in chief. If he is true to his word, US technology that cannot be made or assembled domestically will see its costs going up in the form of increased taxes and new import tariffs. To get around that, firms will need to build infrastructure in the US and take on, presumably, less skilled and more expensive domestic employees.

          With Brexit in the UK taking down the value of sterling against the dollar we’ve already seen what happens to US-based technology when prices up. The price is passed on to the consumer, not absorbed by the manufacturer.

          It’s therefore reasonable to expect the price of tech to increase domestically in the long term and for the cost to feed in internationally.

          There’s some ‘payback’. Enjoy your self-imposed future, addict-boy.

          1. You are a fool and a loser. Fact: The Democrat Party nominated a loser and in their effort to get a women in there (regardless of her crimes), so they could yell “SEXIST” whenever they faced opposition to whatever stupidity they dreamed up — see Obamacare, Dodd-Frank, etc. — just like they yelled “RACIST” throughout the entire Obama fiasco, they consigned themselves totally to the wilderness. The Democrat Party is out of power completely. And they will now have the last 8 years effectively erased as well.

            The Republican Party owns the:
            1. Presidency
            2. Senate
            3. House
            4. Supreme Court

            Enjoy the Trump administration and the coming decades of a conservatively-stacked Supreme Court. I certainly will.

    1. Tech Trump: Silicon Valley steps into the valley of unhappiness
      It’s a long litany of problematic positions

      …As such, Silicon Valley feels that Trump has little or no insight in their business approach. On top of which Trump has held a long persistent belief in a mercantilist economy when nation states protect their own companies from outside forces. That isolationist approach is anathema to tech giants who very success is built on global trade and availability….

      1. Derek.
        A few thoughts.

        Typing, “I hear Alt-Rightists are taking Mr. Trump’s winning the US presidency as an opportunity to bully and ridicule those who don’t share their personal beliefs…” and then doing that exact thing is hypocrisy at its very worst.
        You should be ashamed of yourself.

        Your attempts at portraying Trump voters as brainless, hateful fools is bizarre, and quite fruitless.

        I have friends from every walk of life. Liberals, conservatives, Christian, atheists, and every skin tone you can imagine. I love them all dearly.
        If Trump was inspiring hate I’d hear it. But I’m not.

        Apple has an insane amount of cash stashed in foreign banks. Wouldn’t it be great to repatriate that money? Of course.
        America is awash with illegal immigrants. Why is this tolerated?
        I came here from the UK legally at no small cost and trouble. I believe it is reasonable to expect others to do the same. Is that racism???
        I think not.

        I don’t know you but you just come off as a very bitter and vindictive man here. Calm the heck down.

      1. Poor little loser is now reduced to talking to himself.

        Yawn. Shouldn’t you be out there doing some looting with the rest of your shiftless brethren, Derek?

        You’ve got nothing, while the GOP has everything: The Presidency, the Senate, the House, and the Supreme Court. Game, set, match, and a swift kick in the teeth for good measure.

        Nighty, night! It’s past your bedtime, pajama-boy.

        1. Yes, now the Republicans have everything.. so. no fucking excuses when the market dives, the new depression hits, enormous military conflicts around the world spin out of control. NO EXCUSES. Trump is a one term President MAYBE.. if he isn’t impeached for dozens of reasons. Everything he was able to sidestep in the campaign is now under the microscope and WILL be examined in exhaustive detail. Count on that. I hope he succeeds.. I really do. But my doubts about it are nearly as large as his ego.

  1. May I offer a slight bit of info. The tech products have been almost the only product in mankind’s time that gets better each year but drops in price. Go look at prices for a Mac II fx. Now imagine that price now with a slight up tic for inflation. We are so used to electronics being dirt cheap that the thought of them costing 30% more is “Oh my God, the world will end!!”. Get over it. Trade balance with slave, child, impoverished labor needs to be addressed.

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.