Google Inc. expressed concerns about the growing financial inequality and protests in San Francisco as it might become a major issue in the society.
The Internet giant has been facing various battles against financial inequality as protesters target the company's private charter buses as a symbol of social division. Furthermore, though the presence of Google and other technology companies in San Francisco aided the city's middle-class families from the negative effects of the recession, some economists believe that they drove the increase in the home and apartment rental fees, as well. The increase in house rentals kicked many residents of the state out of their houses.
"The US labor markets, and many others in Europe and elsewhere, have experienced sharply increasing inequality. Though other factors also do play a role, technological change is the most important driver of this explosion in inequality," said Daron Acemoğlu, a professor at MIT, to TechCrunch.
During the book launch event of The New Digital Age: Reshaping the Future of People, Nations and Business, written by Google chairman Eric Schmidt and Google Director of Ideas Jared Cohen, held Friday, Schmidt told the SXSW audience that his company is very troubled about the current situation in San Francisco.
However, he is still positive that the inequality can still be remedied. He even offered three possible solutions to the dilemma. First is the establishment of support startups. Fast-growing startups can open jobs for numerous people that can solve the root problem of the inequality, which is severe joblessness.
Second is the push for more education in science, technology, engineering, and math (STEM), which could help fill empty seats in tech companies.
Last is the "safety net" for those who got laid off from their jobs. The safety net is something that could provide them a home somewhere and a proper healthcare assistance.
Change is inevitable. "The longer term solution is to recognize that you can't hold back technology progress," said Schmidt as quoted by TechCrunch.
