Ask HN: Why is Silicon Valley almost broke? • Hacker News Board

Re: Ask HN: Why is Silicon Valley almost broke?

#11

Post by jmilinion » Tue, Apr 16, 2013, 8:23 PM UTC

mathattack wrote: post #9

For many large projects, it is very hard to separate Silicon Valley the region from the state as a whole. The state is highly dependent on realized capital gains from real estate (hasn't happened in a while) and tech equities (modest, but slower since the Facebook IPO). The cost side has many fixed components, so the state is nearly bankrupt, taking the region with it.

Do you think this will this have an effect on the technology companies there in the long run if things keep going the way they are?

Re: Ask HN: Why is Silicon Valley almost broke?

#12

Post by jmilinion » Tue, Apr 16, 2013, 8:25 PM UTC

BillSaysThis wrote: post #10

Note: I've lived in the Valley since 1996. One thing most people don't factor in is that everything is more expensive here and that to attract workers to skilled but not professional jobs the salaries are higher than elsewhere. My wife is a staffer (not a lawyer or in a position requiring certification) at a well-known law firm and I'd bet her salary is 40-60% higher than if the office were in, say, Portland or Austi…

Silicon Valley is known for having some very smart people solving very complex problems. Do you think there was any way for them to have limited the damage from California over the years?

Re: Ask HN: Why is Silicon Valley almost broke?

#13

Post by mathattack » Tue, Apr 16, 2013, 8:59 PM UTC

jmilinion wrote: post #11

mathattack wrote: post #9

For many large projects, it is very hard to separate Silicon Valley the region from the state as a whole. The state is highly dependent on realized capital gains from real estate (hasn't happened in a while) and tech equities (modest, but slower since the Facebook IPO). The cost side has many fixed components, so the state is nearly bankrupt, taking the region with it.

Do you think this will this have an effect on the technology companies there in the long run if things keep going the way they are?

Not really. The rest of the country is in bad shape too, and there is too much personal concentration there. Where would it go? Singapore? Still very expensive there. New York? Also expensive. Austin? Perhaps...

Re: Ask HN: Why is Silicon Valley almost broke?

#14

Post by BillSaysThis » Tue, Apr 16, 2013, 9:38 PM UTC

jmilinion wrote: post #12

BillSaysThis wrote: post #10

Note: I've lived in the Valley since 1996. One thing most people don't factor in is that everything is more expensive here and that to attract workers to skilled but not professional jobs the salaries are higher than elsewhere. My wife is a staffer (not a lawyer or in a position requiring certification) at a well-known law firm and I'd bet her salary is 40-60% higher than if the office were in, say, Portland or Austi…

Silicon Valley is known for having some very smart people solving very complex problems. Do you think there was any way for them to have limited the damage from California over the years?

Sadly because of gerrymandering and pandering to interest groups, SV hasn't had nearly the influence it might. Also, remember that Cali's issues have been building since the mid-'60s or so and the Valley has only been a significant force for maybe the past decade.

Re: Ask HN: Why is Silicon Valley almost broke?

#15

Post by jmilinion » Wed, Apr 17, 2013, 4:00 AM UTC

BillSaysThis wrote: post #14

jmilinion wrote: post #12

Earlier quoted context omitted.

Silicon Valley is known for having some very smart people solving very complex problems. Do you think there was any way for them to have limited the damage from California over the years?

Sadly because of gerrymandering and pandering to interest groups, SV hasn't had nearly the influence it might. Also, remember that Cali's issues have been building since the mid-'60s or so and the Valley has only been a significant force for maybe the past decade.

How about Silicon Valley itself? How much influence does Silicon Valley have for it's own land?