Why the Postpandemic Tech Bust Sent Billionaires to Trump
The article explores how the post-pandemic tech industry shift, characterized by aggressive hiring and subsequent layoffs, influenced the political leanings of tech billionaires. It links the era of zero interest rates to the expansion of tech firms and the eventual economic correction.
Why it matters
It provides insight into the intersection of macroeconomic policy, corporate labor practices, and the political alignment of the technology elite.
Tech giants went on an unprecedented hiring spree, scrambling to meet new demand and cement their dominance. Where tech workers already had tremendous labor market power in the preceding decade, the postpandemic boom for technology tilted the balance even more sharply in favor of workers. Demand for technical skills exploded, and tech companies scrambled to recruit engineers, designers, and data scientists, often without fully knowing what to do with them.
Between 2019 and 2022, Amazon and Facebook more than doubled their head count, growing by 92 percent and 93 percent, respectively. Microsoft added nearly 80,000 new employees, while Google brought on over 60,000. With so many workers joining the industry, many were onboarded to teams with no immediate tasks, held in reserve for future projects that hadn’t yet been planned—they were, in other words, hired with nothing to do.
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