The tech elite has financed a Democratic Party that now appears to favor socialism over capitalism.

In City Journal, Joel Kotkin writes,

…In the 1980s and 1990s, Silicon Valley, like many industries, placed its bets on both political parties. Moderate Republicans like Pete McCloskey, Ed Zschau, and Tom Campbell routinely won congressional elections, as did similarly minded members of the state legislature. But over the past few decades, the Valley has become politically monochromatic, with virtually no elected Republicans. Almost all contributions from Silicon Valley tech owners and employees in the 2016 and 2018 elections went to Democrats. Tech money helped Newsom outspend his GOP rival by three to one—with major contributions from former Yahoo CEO Marissa Mayer, and Lauren Jobs (widow of the Apple founder) at the top of the donor list. Former Google chairman Eric Schmidt heads data efforts for several Democratic presidential candidates, including Joe Biden, Kamala Harris, Cory Booker, and arch-populist Elizabeth Warren. Tech employees are, if anything, more progressive-leaning in their political contributions than their corporate masters.

Just a few years ago, these investments seemed to be paying off. The Obama administration was deferential to tech firms, steering away from any hint of antitrust action. Google representatives met in the White House weekly, and more than 250 people shuttled between working for Obama and Google during his presidency. Now, this power is being challenged. Google is being sued for monopolistic practices by 48 states. Though progressive California has stayed out of the fray, AB5 demonstrates that the tech moguls are losing ground there, too, to better-organized and more politically savvy public-employee and service unions.

The new legislature’s makeup reveals how much power has shifted to the unions. Beyond protecting gig workers, organized labor has broken with tech on education reform, long a Silicon Valley hot-button issue. Under the current legislative super-majority, the Democrats have worked overtime to make sure that California’s schools—ranked 40th on Education Week’s composite score of national school performance—remain mediocre by undermining charter schools, eliminating exit exams, banning suspensions for unruly students, and, as a recent proposal suggests, introducing a new ethnic-studies curriculum for public school students.

The Californian ruling caste’s progressive sentiments have not translated into broad-based economic benefits. According to an analysis by Chapman University’s Marshall Toplansky, California has created surprisingly few high-wage jobs over the past decade, with 86 percent below the median pay and some 40 percent paying under $40,000—in one of the nation’s most expensive states. In a tech-dominated economy, virtually every other sector has grown slowly, well below results in such key competitors as Texas and Arizona. And even the bounty of Silicon Valley has not helped the state’s middle class, since some 40 percent of all tech jobs have gone to foreign workers.

How long will Silicon Valley’s leaders accept these conditions? Both Lyft and Uber have shifted some of their operations out of state, Lyft to Nashville and Uber to north Dallas. Apple has opened a huge new operation in the suburbs outside Austin. But there may be no escape if the ascendant Elizabeth Warren or Bernie Sanders ends up in the White House, particularly with a Democratic majority in both houses of Congress. In these circumstances, Big Tech is likely to be treated in Washington with the kind of scorn that Amazon faced in New York City from local congresswoman Alexandria Ocasio-Cortez, now increasingly the national voice of the party grassroots. If Warren wins, tech companies and their high-wage upper-tier workers will have to deal with demands to put workers on their boards and pay huge taxes to fund expanded Social Security and Medicare programs. Privacy legislation could impede their highly profitable tracking and data-collection businesses, and antitrust enforcement could see the breakup of companies like Google and Facebook. At least one progressive, Oregon senator Ron Wyden, has even suggested that Facebook’s Mark Zuckerberg face “the possibility of a prison term.”

The tech elite has financed a Democratic Party that now appears to favor socialism over capitalism. A socialist movement is even percolating among Silicon Valley tech employees, many of whom see little opportunity to amass enough wealth to buy a house in the exorbitant Bay Area. Like those French aristocrats who backed revolutionary ideas in the late-eighteenth century only to find themselves riding tumbrels through angry crowds, tech elites have spent a fortune promoting a “woke” politics that is turning against them. They may not lose their heads, but they could find their riches fleeced by former allies. It couldn’t happen to a more deserving, self-involved, and cognitively gifted group of . . . well, idiots.

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