Should tech companies in the San

Francisco bay area be held liable for the

increasing cost of living their expanding
presence is causing?
Cameron - Aaron - Alex - Carolyn - Javier - Justin G. -
Sam
Our Position
It is unethical for the city or the technological
companies that are largely responsible for the
increased cost of living in the area to not
provide concessions to the affected
residents.
Historical Background
Silicon valley is a name for the southern portion of the San Francisco Bay Area. It originally
was the home of the booming companies developing silicon chipsets for computers but
since has expanded to include many other businesses in the technology world. It started
as early as 1890s with Stanford University leaders realizing the potentials of the area and
took off in the years from 1955-1985. Over the course of time as Silicon Valley has grown,
the county of San Francisco has not only experienced an increase in the amount of high-
tech jobs but also an increase in population. According to a census for the area, the
population in the 1950s was 775,357 with a family income of $3,923 and as of the 2010
census it is now estimated at a population of 805,235 and a family income of $85,778.
Because of the tech companies growing and more higher earning individuals moving to the
San Francisco area, some people are suffering from the increase in housing costs. For
example, a couple that lived in San Francisco moved to Alameda County (a more
affordable living situation for families) and a study showed that 15,000 people did the same
between July 2012 and 2013. Because nearly 50% of all people who commute to work in
the San Francisco area drive a personal vehicle, the large tech companies (like Google)
have created a bus system pilot program to bring their employees to work. The San
Francisco Municipal Transportation Agency (SFMTA) recently passed a law where the
companies using these buses must now pay $1 per stop which roughly equates to a total of
$1.5 million dollars in fees over the course of the 18-month program. All money that is
collected is to be put back into the SFMTA system itself.

The Costs
1) Loss of best personnel in schools, fire and
police departments

2) Decline of small businesses

3) Increased traffic from commuters
Public Opinion
Source: University of San Francisco, Dec, 2013
contd
Source: University of San Francisco, Dec, 2013
contd
Source: University of San Francisco, Dec, 2013
contd
Source: University of San Francisco, Dec, 2013
Stakeholders
1) Tech companies

1) Employees/Future employees for tech
companies

1) Non-tech company employees
Tech companies will forever change the economic standing of surrounding
cities. We need to creating a partnership between the two and move forward
with the end goal being sustainable housing. In order to do so, backing from the
tech companies will be needed.
U.S. Department of
Sustainable Housing
and Development

The more you make
the more you spend
PRO: CON:
Mandating a percentage of remote workers. The companies could receive tax breaks for hiring employees who work from home. Fix the issue of the increase in cost of
housing and cuts down on environmental issues in regards to pollution and oil usage.
The companies could receive tax breaks for hiring employees who work from
home. Fixing the issue of increased cost of living and cutting down on
environmental issues in regards to pollution and oil usage. If a company reaches
a predetermined number of employees, they will be mandated to have a
percentage of those works be remote employees.
PRO:
Less Environmental Impact
Geographically Diverse Workforce
Remote Living Locations

CON:


Lack of Management Control
Lost Opportunities for Collaboration & Networking
With the rise of tech companies in major cities, lower income citizens who
cannot afford the cost of living are forced to relocate to other areas. This
displacement, if it continues in cities across the country, will create an even
larger gap between classes. We need to raise the minimum wage to allow
lower income residents to stay afloat in the rising cost of living.
PRO: Indexing the Minimum Wage
Reduce Employee Turnover & Increase Productivity
Not Asking for Living Wage Increase

CON:
Possible Layoffs
Hault in Hiring
Price of Goods Increase
Automated Processes to Replace Human Resources

Technological Concerns
We recognize the importance of technology
in our society. The last thing we want is to
undermine it - which is why our proposals
are meant to mitigate the problem while not
harming the companies.
Technological Advances
Our proposals are possible with existing
technologies, but would be even more
efficient with them.

Examples: The Oculus Rift, and other virtual
reality/conferencing technologies