1/Lots of tech companies and workers are making noises about leaving San Francisco, LA, NYC, and other "superstar" cities.

Some are predicting a shift to remote work and distributed companies.

Let's take a hard look at what that would actually

2/We're all familiar with the trend of tech companies and other knowledge industries (finance, biotech, etc.) piling into a few tech hubs, raising rents and house prices.

Now some think the advent of Zoom, Slack, etc. might reverse this trend.

https://t.co/nQVCJrKvrB
3/But escaping the superstar cities is going to be tough.

The forces keeping tech companies in places like SF are so strong that these regions have essentially become prisons for these companies.
4/In order to escape the prison of the superstar cities, tech companies and other knowledge industries will have to overcome the Four Jailers of Industrial Clustering:

1. In-person office productivity

2. Thick market effects

3. Knowledge spillovers

4. City life amenities
5/I'm actually pretty optimistic that companies can find ways to make remote work productive.

Studies show that working from home *some* of the time actually tends to raise productivity.

https://t.co/HK9DW99qAl
6/Does that mean people can work productively away from the office ALL of the time?

It's not clear yet. But remember, in order to shift out of top cities, tech companies only need to shift PART of their workforce to 100% remote.

That seems very doable.
7/Then there's the "thick market" effect.

Lose your engineering job in SF, and it's easy to find another nearby.

Lose your engineering job in Tulsa and you're in trouble.

Same goes for companies who need to find new employees.
8/To beat the thick market effect, companies and workers will need to learn to do 100% remote job search and hiring. They'll need to get comfortable working closely with people they've never been in a room with.

That seems like a difficult but doable shift.
9/VCs will also have to get used to investing in companies remotely.

In fact, this was a shift that needed to happen long ago, because VCs' cultural preference for in-person investing means that a lot of cities unfairly lose out.
10/But remote work, hiring, job search, and investing are all things that are possible as technology improves.

Companies will look for solutions, and they will find solutions.

But a harder challenge will be replacing the good things about cities that companies DON'T generate.
11/One of those good effects of cities is knowledge spillovers.

Many economists believe that when knowledge workers (like engineers) live in close proximity, they exchange ideas that boost their productivity.

https://t.co/hROA2pMOsw
12/No one company is responsible for knowledge spillovers. They happen outside the company.

So companies can't really replace this benefit of cities.

Maybe the internet will naturally replace knowledge spillovers. Maybe Stack Overflow is all we really need.

...Maybe??
13/Maybe universities, or industry associations, or other actors can try to recreate virtual spaces where engineers can mix, mingle, and share ideas? Just spitballing here.

Anyway, this going to be a taller order than switching companies over to Zoom/Slack.
14/Now we come to the fourth benefit of cities, and the most difficult to replace.

Cities are great places to meet people and do fun stuff.
15/Here's an important but subtle point:

If distributed remote work means that tech workers just move to DIFFERENT SUPERSTAR CITIES, you haven't really changed anything!
16/To really distribute the workforce, you need more than for San Franciscans to work in Tokyo and New Yorkers to work in LA.

You need to get knowledge workers to work in Tulsa, Oklahoma and Cleveland, Ohio.
17/One function of cities -- dating -- actually seems somewhat easy to replace, since it's basically just a 1-to-1 matching process.

But social discovery -- meeting whole groups of friends online -- is a problem that no social media company seems to have solved yet.
18/And restaurants will be even harder. I can't even think of how cities like Tulsa will be able to achieve the variety and quality of dining options of cities like Los Angeles.

Maybe there is a way, but it'll take some creative supply chaining and matching!!
19/Anyway, so there you have it. To escape the prison that cities like San Francisco have become, knowledge industries will need to UNBUNDLE THE CITY completely, for the first time in human history.

It's a tall order. We'll see if they can do it!

(end)

https://t.co/3XYIftJAHd
20/Oh and if you like stuff like this, make sure to sign up for my free email list, so you can get my newsletter delivered directly to your inbox! :-)

https://t.co/FGppA1M8W6

More from Noah Smith 🐇

1/I'm thinking about the end of Apu in the context of the national debates on immigration and diversity.


2/Apu's presence in Springfield represented a basic reality of America in the late 20th and early 21st century: the presence of nonwhite immigrants.

3/As Tomas Jimenez writes in "The Other Side of Assimilation", for my generation, immigrants from India, China, Mexico, and many other countries aren't strange or foreign. On the contrary, they're a

4/But that America I grew up with is fundamentally ephemeral. The kids of immigrants don't retain their parents' culture. They merge into the local culture (and, as Jimenez documents, the local culture changes to reflect their influence).

5/Simpsons character don't change. But real people, and real communities, do. So a character who once represented the diversity that immigrants brought to American towns now represents a stereotype of Indian-Americans as "permanent foreigners".
To be honest, I think this is just the effect of Twitter.

If you're on Twitter all the time - as every political commentator now is - it's easy to think that whiny, big-talking Twitter slacktivists are "the Dems".

But what's happening out there on the ground?


This is another reason I think Twitter is so bad for society.

It convinces intellectuals and commentators that practically everyone who's on their side is an extremist.

Which makes them tolerate extremism out of a (false) feeling of necessity.

If you stay on Twitter too much (which we all do now), you start to think that the typical left-of-center person is some British wanker who quote-tweets "Imagine thinking this" to anyone who doesn't like the idea of "ending capitalism".

But he is not typical.

A majority of Americans are not on Twitter.

But *every* journalist, commentator, and intellectual *has* to be on Twitter.

So every journalist, commentator, and intellectual comes face to face with big-talking slacktivist faux-extremists day in and day out.

It's a problem!!

Online bubbles full of shouty faux-extremists are, in general, fine.

The difference is that every journalist, commentator, and intellectual is essentially forced to exist in THIS bubble, because their jobs require it.

Twitter is a dystopian technology.

(end)

More from Society

A long thread on how an obsessive & violent antisemite & Holocaust denier has been embraced by the international “community of the good.”

Sarah Wilkinson has a history of Holocaust denial & anti-Jewish hatred dating back (in documented examples) to around 2015.


She is a self-proclaimed British activist for “Palestinian rights” but is more accurately a far Left neo-Nazi. Her son shares the same characteristics of violence, racism & Holocaust denial.

I first documented Sarah Wilkinson’s Holocaust denial back in July 2016. I believe I was the 1st person to do so.

Since then she has produced a long trail of written hate and abuse. See here for a good summary.


Wilkinson has recently been publicly celebrated by @XRebellionUK over her latest violent action against a Jewish owned business. Despite many people calling XR’s attention to her history, XR have chosen to remain in alliance with this neo-Nazi.

Former Labour Shadow Chancellor John McDonnell MP is among those who also chose to stand with Wilkinson via a tweet.

But McDonnell is not alone.

Neo-Nazi Sarah Wilkinson is supported and encouraged by thousands of those on the Left who consider themselves “anti-racists”.

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