Business as Usual in The Information

Asides

The Information wrote Business as Usual — Remotely, which includes “85% of its 900 employees working from their homes” Hashicorp, which just raised $175M at a $5.1B valuation today. (I have to get them on Distributed.) Here’s my part:

A survey of American workers by the polling firm Gallup found that in 2016 43% of employees worked remotely at least some of the time, up from 39% in 2012. Of those remote workers, almost a third spent 80% or more of their time working remotely in 2016, compared to 24% in 2012. In computer-related professions, 57% did some remote work in 2016, according to Gallup. 

That includes tech companies like Automattic, which makes WordPress and other software products and has been almost entirely remote since it was founded in 2005. At one point, it opened a large office in San Francisco for employees who preferred a more traditional work environment, but it got rid of that space in 2016 because of how little people used it.  

“We had this 15,000-square-foot place with only five people coming into it,” said Matt Mullenweg, CEO of Automattic, which acquired Tumblr last year. 

Now Automattic rents only one small co-working space in a WeWork suite in New York  and uses another small office in San Francisco exclusively for board meetings. It manages its remote workforce using Slack and Zoom and gives new employees $2,000 so they can purchase home office equipment. 

Employees can also get up to $250 per month for access to a co-working space or for daily coffees at a local coffee shop. But Mullenweg says only about 300 of the company’s 1,200 employees chose to work somewhere other than a home office.

“I hope there can be a silver lining to this crisis, which we all hope is over as soon as possible, that enables people to reexamine how they work and how they interact with things and improve it,” said Mullenweg. “I’m happy to spread the gospel wherever possible for distributed work. I think it’s better for companies, employees, the environment and the world. There are very few downsides.” 

The Information is a worthwhile subscription if you’re in the tech business.

CAFE Defeats Saved Lifes

Politics

WASHINGTON–Sens. Tom Daschle, D-SD, and John Kerry, D-MA, conceded today that
they lacked the votes in the Senate to pass a major increase in the corporate
average fuel economy (CAFE) standards. Jerry Taylor, director of natural resour
ces studies at the Cato Institute, called it "a tremendous victory for
human health and the economy." He had the following comments:

"Environmentalists who supported an expansion of CAFE standards for
cars and light trucks are allowing their hostility to energy use to override
their common sense. For instance, the National Academy of Sciences reported
last year that the current standards are directly responsible for the deaths
of 1,300 – 2,600 motorists a year. That’s because automakers find that the
cheapest way of incr easing fuel efficiency is to reduce the size and weight
of the cars they sell, making them more dangerous to motorists in a crash.
Dramatically expanding CAFE standards would accelerate this trend and would
directly result in the deaths of hundreds, if not thousands of Americans.

"While the costs of expanding CAFE standards is steep, the benefits
are ephemer al. Expanded standards certainly wouldn’t reduce foreign oil imports.
For instance, since the CAFE standards were first introduced, the average
fuel economy more than doubled for new cars and grew by more than 50 percent
for new light trucks, but imported oil has increased from 35 to 52 percent
of U.S. consumptio n. Reducing oil demand would remove the most expensive
oil sources from the mar ket first, and foreign oil is the cheapest oil supply
source in the world. Dome stic producers, not foreign oil producers, would
be hit hardest if gasoline demand were to decline.

Read on for more

Continue reading CAFE Defeats Saved Lifes →

Evolution of San Francisco

Tech

There have been three excellent writings on the effects and consequences of the latest boom on the Bay Area, each long but worth reading.

The East Bay Express, with a permalink I’m sure won’t work a decade from now, brings us The Bacon-Wrapped Economy:

The arts economy, already unstable, has been forced to contend with the twin challenges of changing tastes and new funding models. Entire industries that didn’t exist ten years ago are either thriving on venture capital, or thriving on companies that are thriving on it. It is now possible to find a $6 bottle of Miller High Life, a $48 plate of fried chicken, or a $20 BLT in parts of the city that used to be known for their dive bars and taco stands. If, after all, money has always been a means of effecting the world we want to bring about, when a region is flooded with uncommonly rich and uncommonly young people, that world begins to look very different. And we’re all living in it, whether we like it or not.

SFGate has The hypocrisy in Silicon Valley’s big talk on innovation:

“[I]nnovation” is something of a magic word around here, shape-shifting to fit the speaker’s immediate needs. So long as semiconductors and coding are involved, people will staple it to anything from flying cars to the iFart app.

Other times it’s just code for “jobs,” used to justify asking for government favors one day and scolding them for meddling in the free market the next.

“Lower our payroll taxes because … innovation.”
“Drop that antitrust inquiry because … innovation.”

But for all the funding announcements, product launches, media attention and wealth creation, most of Silicon Valley doesn’t concern itself with aiming “almost ridiculously high.” It concerns itself primarily with getting people to click on ads or buy slightly better gadgets than the ones they got last year.

The final comes from Rebecca Solnit, who I’ve quoted before, writes a diary for the London Review of Books.

I weathered the dot-com boom of the late 1990s as an observer, but I sold my apartment to a Google engineer last year and ventured out into both the rental market (for the short term) and home buying market (for the long term) with confidence that my long standing in this city and respectable finances would open a path.