Tech’s outsize impact
The recent banking dilemma at SVB spread to other small and regional banks, while the government stepped in and declared all SVB depositors would get all their money back. Still, that hasn’t completely calmed markets or investors. Witness Wednesday’s spasms in the market for the types of government securities long thought to be among the world’s safest assets.
The same tech industry-based economic engine that fueled the global economy on the way up—turning every invested dollar into what seemed like a buck and a half, is now coming back to Earth.
It isn’t entirely bad news. The tech-heavy Nasdaq Composite Index has gained about 15% from its low point last year in October, and some stocks have done even better. Meta’s share price is up nearly 122%, though still miles below the all-time high it hit in 2021. The information-technology industry directly accounts for more than 10% of the U.S. economy, and about 8% of all jobs, according to the Commerce Department of. The Information Technology & Innovation Foundation, a Washington-based think-tank backed by tech companies, claims that the industry accounts for nearly one in five jobs in the U.S., when you include roles that support tech.