I recently wrote that I thought all the NSA spying and “partnering” with US tech companies could impact the economy negatively. If businesses which buy from US tech companies can’t count on confidentiality many times those businesses simply won’t do business. With all the big US tech firms tied in with the NSA in one way or another why would any foreign companies ever choose to use an American operating system, or tablet, or PC, or whatever?
For example the German government has warned that it feels Windows 8 from Microsoft may have NSA friendly “back doors” built into the software. If this is the case who in their right mind would buy the system?
This is bad news. Tech is the driver of the US real economy. It’s not finance, insurance, or real estate, it’s a real industry which makes things, and right now we lead the world. But if the 4th Amendment no longer applies in this country (it still does) and the government can burrow its way into everything built from code, we have got more than a government overreach problem. People are going to lose jobs.
Google agrees and thankfully is saying something.
(From The New York Times)
The backlash against government Internet surveillance could hurt the United States economy, partly because businesses and consumers could abandon United States cloud companies, said Richard Salgado, the director for law enforcement and information security at Google, in testimony before the Senate judiciary subcommittee on privacy, technology and the law.
He cited studies like one from Forrester that predicted the cloud computing industry could lose $180 billion, 25 percent of its revenue, by 2016.
Already, countries like Brazil are considering so-called data localization laws, which would require that all data related to Brazilian companies and citizens be stored in Brazil. This movement “has gained considerable traction since the revelation of the Prism program,” Mr. Salgado said, and added that companies like Google “could be barred from doing business in one of the world’s most significant markets.”