Silicon Valley is all cheers as Joe Biden is set to take over the White House and are eager to work with the incoming Biden administration.
The Tech World is hoping for reversals in Donald Trump’s immigration policies that created barriers for high skilled visa holders.
The Trump administration had announced stringent new immigration laws designed to make it more challenging for skilled workers to acquire visas.
This served a significant blow to silicon valley, particularly in the tech field that requires skilled workers on H – 1B visas.
Some of the biggest names in Silicon Valley have been unhappy and clashed with the Trump administration in court lawsuits, suing over executive orders constraining foreign workers’ immigration.
Silicon valley in the southern part of the San Francisco bay area in Northern California serves as a global center for high technology, innovation.
It homes some of the world’s largest high–tech corporations and startups and also headquarters of more than 30 businesses in the Fortune 1000.
It largely contributes to roughly 225,300 high- tech jobs.
U.S tech built its foundation and success by drawing the best talent from all over the world. This enabled companies to build great products, generate enormous amounts of capital, and get a chance to change the world via innovation and tech.
The familiar premise that the tough immigration laws will help free and provide up to 500,000 jobs for American workers is not likely to make a dent in the U.S unemployment rate but rather make it harder for the tech companies to find talent and fill specialized positions.
Hence, many in the tech world weren’t welcoming new immigration laws and voiced concerns over cutting American companies off from global talent and giving competitive opportunities to other countries.
Joe Biden’s record-breaking fundraising.
Joe Biden has found generous support in Silicon Valley, Wall Street, and Billionaire investors, helping him to record-breaking power fundraising for his Presidential campaigns.
In a list released by Biden’s campaign, Tony James, vice chairman Blackstone Group Inc, LinkedIn in co-founder Ried Hoffman were some of the biggest names contributing to Biden’s campaign.
Biden had back-to-back record-breaking fundraising in the months of August and September.
Some of Wall Street’s names that helped raise money for Joe Biden, co-founder of Centerview partners – Blair Effron, Founder of Evercore – Roger Altman, Morgan Stanley vice chairman – Tom Nides along with several other prominent names.
Silicon Valley was welcoming the election of Joe Biden as Biden had signaled he would overturn Trump’s orders on limiting visas for skilled workers sought by technology firms.
The Tech world is looking forward to finding it easier to get much needed skilled workforce from overseas with fewer hurdles.
Donald Trump’s blow to the tech world – Silicon Valley
Donal Trump made it clear under his ‘America First’ administration; it will be harder for foreigners to work or travel to the United States because of stricter immigration laws.
This was a significant blow to Silicon Valley’s delicate ecosystem. With its unrivaled network of entrepreneurs and investors with expertise in building companies, the California economy promotes startups to thrive and eventually become large corporations.
However, the Californian economy has thrived majorly due to the influx of skilled immigrants who help build businesses, spend, and invest in homes.
Stricter immigration laws would mean a dearth of talent, companies to relocate, and businesses choosing other destinations with more relaxed immigration laws. Hence the American Companies would lose their competitive edge and advantage.
Michael Seibal, CEO and partner – ‘America is participating in a competition for talent. If we change immigration policies and make it harder for smart people to come and stay, we are going to start losing this battle.’
What the Silicon Valley expects from Joe Biden
Address Competition – Joe Biden’s most crucial decision would be how to approach competition. Silicon Valley is looking forward to the Biden administration relaxing immigration laws and new anti-trust legislation.
China – Silicon valley’s other worry is the increasing bitterness between the US and China. By going after Chinese companies, American companies are undermined, and China is encouraged to develop its own products instead.
TAX – The most immediate threat that the US businesses face is Biden’s proposal to raise corporate taxes by 7 percentage point to 28 percent.
Visas – Large technology firms hope that Biden will relax the H1- B visas that allow Tech firms to hire much needed global talent.
The Silicon Valley may be celebrating Joe Biden’s Victory and have played an enormous role in his campaign fundraising; however, it remains to be seen if the Tech World’s expectations are met