Does anyone in tech pay attention to unemployment numbers? Hard to buy that new gizmo when you don’t have a job, right?
  • 16 Comments
by Nicholas Deleon on November 6, 2009

un

Writing about tech is so peculiar. On one hand we’re expected to be enthusiastic about the things we cover; no one wants to see us being negative and dismissive about every little thing. That’s no fun. On the other hand, you don’t want a bunch of ninnies bleating on about how great this year’s piece of plastic is compared to last year’s. How is that useful to anyone? A bit of skepticism is necessary so we don’t come across as cheerleaders for this or that company, or for this or that device. You can’t be objective if you worship the ground that the two Steves—Jobs and Ballmer—walk on.

I bring this up not as a condemnation, but rather a recognition: much of this is quite silly. The Motorola Droid comes out today, and my first reaction was, “Eh, so what?” That’s not a popular opinion, of course, and a quick trip to Techmeme will confirm that for you. (Techmeme is a king-making Web site that’s really, really influential for some reason. You can’t fight city hall.) I just can’t get excited over the launch of a device that should have come out years ago. I can recognize its importance to Verizon Wireless (the Droid being the first non-BlackBerry smartphone worth its salt that’s available on VZW), and its place within the wireless industry, but I’ll be damned if I’m going to sit here and be all, “Woo, a phone is available! Hooray for the corporations behind it~!”

Look at the unemployment numbers that the Department of Labor released today. A full 10.2 percent of Americans are out of work right now. That’s a big deal, and will most certainly affect consumer electronics’ companies bottom line this holiday season. How many of these people (or people in similar, dire economic circumstances) are looking forward to a new smartphone? Or a new HDTV? Or a $150 video game?

I’m actually surprised that I haven’t seen more made of these unemployment numbers. The holiday shopping season starts pretty soon (if it hasn’t already!), and I really do wonder how many of the companies we write about will fare. Not to pick on the Droid again (it’s just in the news today, so it’s in my head), but how many people are prepared to buy the phone for themselves or a family member, and then commit to paying a minimum of $70 per month just to use the thing? How many copies of DJ Hero will be under so many Christmas trees when mommy and daddy are having a tough enough time paying the bills as it is? I’m not saying these things won’t sell at all, but I haven’t noticed too many stories in the tech press that so much as hinted at the tough times these companies might have. Not everyone can swing $200 + $70 per month (for one line!) on a basic communication device. I mean, does a $200 smartphone sound any better than a freebie phone you can grab with a $40 per month contract? As impressive as Android 2.0 is, I don’t know if I’d say it’s any more important than putting food on the table for your kids.

(Incidentally, a comment over at TechCrunch made a similar point, that, you know, providing for one’s family is more important than having the latest version of Android in your pocket.)

I write about this stuff with a few things in mind, one of which is that this is all largely for funsies. It’s fun to see that latest super-thin netbook, or to see what new developments that are in the e-book front. It’s fun to tease the Apple TV for being a useless hunk of junk, and it’s fun to predict to what degree that Apple tablet will destroy its competition. But don’t think I assume that all of you have tons of disposable income to throw around to buy the latest widget, one that’ll be obsolete within six months.

I completely lost track of this some time ago, yes. I just sometimes feel that the whole tech world gets caught up in the hype of THIS THING or THAT THING without considering what’s happening in the real world. A tech bubble, if you will. Just know that I recognize it (as do the rest of the CG guys), and try not to get caught up in it. That’s all.

Image swiped from Drudge. Can’t beat bold, red font.

Comments rss icon

  • I view this site strictly for fun. I view a lot of the tech sites to keep up with the tech. Knowing that I shouldn’t buy everything I see, even if I really really want to.

    I have a lot of stuff around. I used to buy a lot of new gizmos on lauch. As of late I have been putting it in savings and trying to plan for the “in case” emergencies.

    Good information and good topic. However, I do read crunchgear for funsies. SOO…

    For the “desperate to always have the greatest” folks out there, always remember that a kidney on the black market is worth some major coin and you only need one.

  • So the big iPhone killer that you all gushed about is off to a slow start and you are blaming the economy? Wasn’t an issue for the iPhone or Apples other products.

    The shrieking fanboy rants that this or that is the iPhone killer you are all waiting for is for naught. Nothing but another Pre.

    I am always amazed how people hate a product just because it is number one. Go ahead pour on the hate because in the end, the only thing that matters is unit sales.

    I await the breathless fanboi rants that are sure to come.

  • There are millions of employed people who will sacrifice their new borns to get the latest greatest smartphone with unlimited voice + data plan. The recession will not hurt Apple, that’s for sure.

  • Sounds like someone needs a hug. Nick, I get where you’re coming from, and I think most folks recognize that this site is entertainment and a distraction from other things that we could be doing (such as actually working or actually looking for a job). And that has value. On top of that, there are a lot of gadgets that actually make life easier and may even be necessary for a new career; I spent a couple hours today researching portable projectors because they might be useful in my next project. That’s valuable stuff! So yes, you’re entertaining us, and yes you’re actually providing valuable information. If we can’t buy everything you post, and we feel bad, that’s because of us, not you. If you are really feeling like you’re not doing something valuable, go start a blog about famine, war, genocide, poverty, financial collapse and pandemics if it’ll make you feel better. Just don’t quite your day job; we need you here :)

  • Nobody talks about it because they don’t want people to panic. That generally only makes things worse.

    I was employed last week, now I’m unemployed. It took me 3 months to get that job with over 60 applications put in.

    This country is too damn passive. Nobody gives a shit about anything. The whole world is suffering and its all because of our government. There are so many things that are screwed up. Maybe that’s why nobody cares anymore? There’s just too much BS to deal with, nobody knows where to even begin to start and it’s not like we can just march in with guns and take things over. But that’s what we should do, we should start by wiping the government clean of its current holders. I’m pretty sure it’s common knowledge at this point that it’s about as corrupt as it gets. I mean really, I’ve never seen a government care less about it’s own people that isn’t from some 3rd world country or something.

    • “This country is too damn passive. Nobody gives a shit about anything. ”

      Ooh, look here shiny gadget, It plays games, music, tunes your guitar and makes phone calls. Nothing to see over there, ignore the man behind the curtain. Unemployed? There isn’t an app for that.

  • Great post. I agree that we sometimes forget to see the big picture when following the hype and buzz surrounding tech product releases. But it’s important to realize that the hype and buzz in which sites like CrunchGear participate, promote, and cause also serves a valuable purpose.

    For many people who aren’t “early adopters”, who can’t afford, or chose not to purchase the very latest tech products but would if they could, buzzing tech sites help satisfy their “tech addiction”. To read about the latest devices, their capabilities, and speculate about the future amongst a community of similar people is the closest many people will ever get to experiencing the gadgets they wish they could have.

  • It sucks if you’re in that 10% (or higher), but don’t forget that means the other 80-90% of the workforce is still employed. Outside of their stock portfolios and paper housing gains, a lot of people have barely been impacted by the recession and are still free to fulfill their gadget lust. Look at Apple’s numbers. It’s like the recession never happened.

    • Heh… you’re misreading what that percentage actually indicates. It’s 10.2% FIRST-TIME unemployment applications. This doesn’t account for the long unemployed who no longer register as a statistic, for example. And it’s not a census based (as I presume you’re assuming) percentage of unemployed versus employed. You can’t just take 100% and subtract 10.2% to claim that around 90% of the population IS employed. Again, it doesn’t work that way.

      • That’s not 10.2% first-time applicants the last quarter. That’s over the last 2 years. Now the structurally unemployed % might by closer to 17%.

  • Even worse, Verizon will charge another $30 for tethering.

  • Yes, you are most certainly right! I know that my constricted budget is going to preclude me from getting that HTC Hero or a DROID, but I can still hope that the jolly old elves at Crunchgear might just send me a spare crunchpad to test….

  • Remember, there are things called companies which are a little different from individuals. My company (J-List) is profitable, so within reason it behooves me to upgrade my tech stuff lest I pay even more out in taxes. Since there’s essentially a 35% tax rate here in Japan (combining local and corporate), it means I can get 35% “off” buying a new Macbook Pro or iPhone in real terms, which often is enough to make me pull the trigger, as long as I’m going to be using the stuff. The moral of the story? If you have any excuse, run a corporation and enjoy “free” tech stuff (sort of).

Leave Comment

Commenting Options

Enter your personal information to the left, or sign in with your Facebook account by clicking the button below.

Alternatively, you can create an avatar that will appear whenever you leave a comment on a Gravatar-enabled blog.

Trackback URL
Short URL
bugbugbug