JACK: SILICON VALLEY STUMBLING,
MORE LAYOFFS ARE ON THE WAY.
WHAT DOES IT MEAN FOR THE TECH
INDUSTRY AND THE ECONOMY AS A
WHOLE?
JOINING THE NYU PROFESSOR OF
MARKETING AND AUTHOR OF
ADRIFT:AMERICA IN 100 CHARTS.
SCOTT GALLOWAY.
THANK YOU FOR JOINING US FROM
MUNICH.
YOU HAVE BEEN WARNING FOR MORE
THAN A YEAR OF THE PATAGONIA
RECESSION.
WE’VE BEEN SEEING A LOT OF
LAYOFFS IN THE TECH SPACE.
HOW FAR.
GO?
DO YOU SEE THAT SPILLING INTO
THE REST OF THE ECONOMY?
>> I BELIEVE IT IS GOING TO GO
MUCH DEEPER.
IF YOU LOOK AT THE INCREASE IN
HIRING, AMAZON HAD HALF A
MILLION PEOPLE IN ONE YEAR.
NO ONE HAD DONE THAT BEFORE.
A LOT OF THESE LAYOFFS, BACK TO
APPOINTMENT LEVELS, IT IS MORE
SPECTACLES AND SIGNIFICANT.
THE ECONOMY OUTSIDE OF TECH
EMPLOYMENT IS AT HISTORIC
HIGHS.
AS A PERCENTAGE OF NONFARM
PAYROLLS, LAYOFFS ARE LOWER
THAN THEY WERE PRE-PANDEMIC.
IT MAKES FOR GOOD HEADLINES BUT
THE REALITY IS EMPLOYMENT
ACROSS THE ECONOMY IS STRONG, BUT IN BIG TECH IT IS A LOT
BUT IN BIG TECH IT IS A LOT
WORSE.
JACK: YOU HAVE BEEN TALKING
ABOUT TWITTER’S MISMANAGEMENT
BY JACK DORSEY.
ELON MUSK IS TRYING TO RUN TWO
COMPANIES OR 3 OR FOUR.
IS TESLA AT RISK?
WHAT IS AHEAD FOR TWITTER?
>> I THINK IT PLAYED OUT.
THE VIRUS IS OUT OF THE TWITTER
LAB AND AFFECTED TESLA WHICH
LOST 50% OF ITS VALUE IN THE
LAST FOUR MONTHS.
PEOPLE ARE LOOKING FOR REASONS
TO BRING IT DOWN.
IT IS HARD TO IMAGINE.
I CAN’T THINK, MAYBE YOU CAN,
OF ANOTHER COMPANY THAT WENT
FROM A $5 BILLION RUN RATE TO
NOW ONE.
5 MILLION-DOLLAR RUN RATE IN A
MATTER OF THREE OR FOUR MONTHS.
THE WORST ACQUISITION IN
HISTORY, $45 MILLION FOR
COMPANY THAT IS GENEROUSLY
WORTH $10 BILLION NOW.
IT INFECTED TESLA.
WE WILL SEE IF IT INFECTS SPACE
X.
JACK: I HAVE TO THINK MICROSOFT
IS THREATENING TO UNSEAT
FACEBOOK.
ARTIFICIAL INTELLIGENCE COULD
SNATCH BEING FOR RELEVANCE.
COULD AND AI MAKE IT A THREAT
TO GOOGLE?
>> A GREAT QUESTION.
EVEN WITH A $10 BILLION
ACQUISITION, THAT IS IS HALF
OF 1% SOLUTION FOR THE
OPPORTUNITY TO GAIN NEW LIFE.
THIS ISN’T A WORD YOU HEAR A
LOT ANYMORE.
IF THEY COULD CREATE SOMETHING,
I WOULD BE SHOCKED IF AND WHEN
THEY INTEGRATE INTO BEING, UP
20% THAT DAY, IT ALMOST SAYS TO
ME AT THE END OF THE DAY WHAT
IS OLD IS NEW AGAIN AND WHOEVER
OWNS CLOUD AND PROCESSING POWER
ON THE FRONT END, A CONSUMER
OFFERING THAT IS UP AND
RUNNING, STILL HAS A LOT OF
POWER.
JACK: I WANT TO GO TO YOUR NEW
BOOK ADRIFT.
YOU EXPLAIN SWEEPING LONG-TERM
TRENDS IN THE US ECONOMY USING
CHARTS BUT ONE POINT THAT IS IN
THE NEWS RIGHT NOW IS THE
DEBATE OVER RESTORING FUNDING
TO THE IRS.
CAN YOU EXPLAIN IN LONG-TERM
CONTEXT FOR US?
>> WE NEED 22% OF GDP TO
OPERATE OUR GOVERNMENT.
IMAGINE PEOPLE PAYING $1
MILLION CORPORATIONS PAID ON
AVERAGE 30% TAXES.
THE REST OF US WOULD HAVE TO
PAY 9-FOURTEEN%.
PEOPLE WOULD BE DOWN WITH
PAYING THAT.
TAXES SHOULD COME DOWN.
EVERYBODY NEEDS TO PAY 150%
PROFITS IN LOWER TAX DOMAINS.
VERY WEALTHY PEOPLE, 99%, HAVE
SEEN TAXES GO DOWN.
ONE OF THE REASONS IS THE
THREAT OF ENFORCEMENT HAS GONE
DOWN.
YOU ARE LESS LIKELY TO BE
AUDITED.
YOU’VE GOT TO GIVE THE
REPUBLICANS CREDIT FOR
REPRESENTING THE TOP 1% REALLY
WELL.
AUTOMATION AND TECHNOLOGY
RESULTED IN GREATER AUDITS FOR
SIMPLE TAX RETURNS, THE TAX
CODE HAS GONE FROM 400 PAGES TO
4,000.
WEALTHY PEOPLE TAX FILINGS ARE
COMPLICATED, MORE HUMAN CAPITAL
INTENSIVE.
WHEN YOU CUT FUNDING WHAT
YOU’RE SAYING IS YOUR SIGNALING
TO WEALTHY PEOPLE COMPLICATE IT
TAX RETURNS THAT THE SMART
THING TO DO IS CHEAT ON YOUR
TAXES.
IT SENDS THE WRONG SIGNAL.
LOWER AND MIDDLE INCOME TAX
FILERS END UP PAYING MORE.
JACK: THERE ARE A FEW AREAS OF
BIPARTISAN AGREEMENT IN
WASHINGTON BUT ONE OF THEM IS
THE TECH INDUSTRY, BOTH PARTIES
HAVE SPECIFICS BEEN A WALL
STREET JOURNAL OP-ED, BIDEN
TRIED TO BRIDGE THE GAP WITH
THREE CONCERNS ABOUT TECH.
WHAT DO YOU THINK OF THOSE
IDEAS?
>> THEY MAKE ALL THE SENSE IN
THE WORLD TO.
THE PERFORMANCE DOESN’T MATCH
THE PROMISE WE HEARD ABOUT BY
PRISON AGREEMENT, OR DESIRE TO
REIGN IN BIG TECH.
AT THE END OF THE DAY WE HAVE
TO PASS MEANINGFUL LEGISLATION.
WE SEE MORE WEAPONIZATION OF
OUR ELECTIONS, ANTI-COMPETITIVE
BEHAVIOR.
I AM NOT HOPEFUL.
THEY’VE GOT THEIR INTENTIONS
FROM THE RIGHT PLACE BUT THE
MUSIC HAS TO MATCH THE WORDS,
THE PERFORMANCE DOES NOT MATCH