California is the future of the United States, goes the oft-cited cliché. What the US is doing now, Europe will be doing in five years, goes another. Given those truthy maxims, let’s examine the socioeconomics of the “City by the Bay” as a harbinger of what’s to come.
Data shows that technology and services make up a large fraction of citywide employment. It also shows that unemployment and housing prices follow the tech industry’s boom-and-bust cycle. Amid the current boom, a family of four earning $117,400 now qualifies as low-income in San Francisco. Some readers laughed when I wrote in a memoir about working at Facebook that my six-figure compensation made me “barely middle class.” As it turns out, I wasn’t far off. With that credential, consider this rumination on bougie life inside the San Francisco bubble, which seems consistent with the data and the experience of other local techies.
San Francisco residents seem to be divided into four broad classes, or perhaps even castes:
The Inner Party of venture capitalists and successful entrepreneurs who run the tech machine that is the engine of the city’s economy.
The Outer Party of skilled technicians, operations people, and marketers that keep the trains belonging to the Inner Party running on time. They are paid well, but they’re still essentially living middle-class lives—or what lives the middle class used to have.
The Service Class in the “gig economy.” In the past, computers filled hard-for-humans gaps in a human value chain. Now humans fill hard-for-software gaps in a software value chain. These are the jobs that AI hasn’t managed to eliminate yet, where humans are expendable cogs in an automated machine: Uber drivers, Instacart shoppers, TaskRabbit manual labor, etc.
Lastly, there’s the Untouchable class of the homeless, drug addicted, and/or criminal. These people live at the ever-growing margins: the tent cities and areas of hopeless urban blight. The Inner Party doesn’t even see them, the Outer Party ignores them, and the Service Class eyes them warily; after all, they could end up there. [Continue reading…]