Section 174: The tax code time bomb fueling mass tech layoffs

[rcjordan]

https://qz.com/tech-layoffs-tax-code-trump-section-174-microsoft-meta-1851783502

[littleman]

And of course, the losses don't stop at Meta's or Google's campus gates. They ripple out. When high-paid tech workers disappear, so do the lunch orders. The house tours. The contract gigs. The spending habits that sustain entire urban economies and thousands of other jobs. Sandwich artists. Rideshare drivers. Realtors. Personal trainers. House cleaners. In tech-heavy cities, the fallout runs deep — and it's still unfolding.

Really interesting.  As someone who had the tech industry grow up along side me in the same area, I believe the net effect may be more complicated than this.  Tech economy have made life harder for those who are not in tech.  Yes, they have created service jobs that cater to the needs of those making tech money, but the economy has largely squeezed out non-tech people from what use to be obtainable.

There was a study recently on the Walmart effect where they measured the decline of the working class buying power when big box stores come into an area.  I would argue that a similar phenomenon happens with the people surrounded by the tech economy but don't participate in it directly -- they become relatively poorer in real purchasing power.   Instead of happening because of downward pressure on wages, it happens because of upwards pressure on living expenses (food, rent, entertainment, etc.).