There is a veritable kaleidoscope of activity happening in the business world here in California. There are major fears that Silicon Valley may be headed for a burst bubble. Governor Jerry Brown seeks a long-lasting policy legacy in water and transportation by working with all political parties and working towards a fourth term. And despite a hiring increase, California businesses show no signs of pay raises in the next few years, suggesting a major shift in the way business works. Here’s what’s going on this week.
Will Boom Lead to Bust in Silicon Valley?
The analysts and Silicon Valley veterans have chimed in. There are far too many tech industry businesses burning through huge sums of money – sometimes in the billions – with no real plan to ever turn a profit. Rent in San Francisco and surrounding areas has gone up 10% in the past year, and there seems to be no sign of a slowdown. It’s beginning to resemble the Dot Com bubble of the 90s, and seasoned vets warn of an impending burst. Read more on the New York Times.
Brown Pursues Lasting Policy Legacy in California
Governor Jerry Brown is a third-term Governor in the state of California. His first two terms ended in 1983 with a vote to limit gubernatorial stays to two terms. He gained a reputation for being “right”, a know-it-all, and a bit of a hippie, earning a reputation as the “moonbeam” governor. However, he seems to be a bit different this time around, working feverishly with all political parties to fix major problems that the state is facing. He plans on spending “the next four years” on fixing our drought problems and pushing through the high-speed railway. Get all the facts on the State Journal.
Survey: Pay Raises Rarer Despite Strong US Hiring
It looks like pay raises will be a bit rarer this quarter. Trends show that only 24% of companies offered pay raises in the July-September quarter, which is down from 43% (nearly half) of the April-June quarter. It’s also the first quarter of drop after three straight quarterly increases. The survey, performed by the National Association for Business Economics, also showed a number of other trends, including reduced profit margins and an abundance of available talent for hiring companies. Check the numbers on ABC News.
That’s a wrap for this week. If there is news we missed or you have an opinion you’d like to share, leave it in the comments. Have an awesome Monday!