With Profits Soaring, Tech Companies 'Won the Pandemic'

In April of 2020, Jeff Bezos announced Amazon would spend their next quarter focusing on people instead of profits, remembers the New York Times:

At the end of July 2020, Amazon announced quarterly results. Rather than earning zero, as Mr. Bezos had predicted, it notched an operating profit of $5.8 billion — a record for the company. The months since have established new records. Amazon's margins, which measure the profit on every dollar of sales, are the highest in the history of the company, which is based in Seattle... Amazon's pandemic triumph was echoed all over the world of technology companies.

Even as 609,000 Americans have died and the Delta variant surges, as corporate bankruptcies hit a peak for the decade, as restaurants, airlines, gyms, conferences, museums, department stores, hotels, movie theaters and amusement parks shut down and as millions of workers found themselves unemployed, the tech industry flourished. The combined stock market valuation of Apple, Alphabet, Nvidia, Tesla, Microsoft, Amazon and Facebook increased by about 70 percent to more than $10 trillion. That is roughly the size of the entire U.S. stock market in 2002. Apple alone has enough cash in its coffers to give $600 to every person in the United States. And in the next week, the big tech companies are expected to report earnings that will eclipse all previous windfalls.

Silicon Valley, still the world headquarters for tech start-ups, has never seen so much loot. More Valley companies went public in 2020 than in 2019, and they raised twice as much money when they did. Forbes calculates there are now 365 billionaires whose fortunes derive from tech, up from 241 before the virus.

No single industry has ever had such power over American life, dominating how we communicate, shop, learn about the world and seek distraction and joy. What will Silicon Valley do with this power? Who if anyone might restrain tech, and how much support will they have...? The biggest, and perhaps the only, threat to tech now is from government...

Beyond the threat of misuse of tech lurks an even darker possibility: a misplaced confidence in the ability of one loosely regulated sector to run so much of the world.

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