This time it's Joel Kotkin, over at Forbes, commenting on what passes for the Silicon Valley economy.
As I keep observing: the bottom has fallen out, and the middle is crumbling.
The real Silicon Valley, where the innovation happened, and (as Jordin Kare put it) fortunes grow from dreams, hasn't existed since the 1990s; the dot-com boom (v1.0), while seeming to mask its demise, was actually a symptom.
A few quick notes on scanning the article at hand:
Libertarians will celebrate the triumph of fast-paced greed and dismiss concerns over equity
Depends which breed of libertarian. The current business climate is driven by a small number of people deciding how to invest vast amounts of other people's money, and that, in turn, is substantially driven by government policy, which the holders of the concentrated money are in a position to influence. In any case, it's a positive-feedback loop of concentrated power, which this small-l libertarian considers a Bad Thing.
Another suggestion is that they can cut hair, walk dogs, and work on the houses
of the digerati; given the extraordinary housing prices in the places
where the anointed live, how they will afford to live anywhere near them
is a bit of mystery.
Or get a job as a grocery clerk... Palo Alto still has full-service grocery stores, unlke the cities to the south, which are almost all self-checkout these days. Still: it's not just the insane cost of housing. The "progressives" in Sacramento and D.C. insist on adopting policies that drive up the price of everything. (If you think the premium on your nice new Obamacare policy is outrageous, just wait until you get sick and find yourself paying 40% of list price for health care. Remember, kids, list price for health care is ten times a reasonable price, so at 60% coverage you're paying four times what it should cost, plus the premiums.)
The people who settle in these places are not, as often asserted dummies stuck at the low rung of the meritocracy; the cities with the fastest-growing college-educated populations are primarily in the Sun Belt and Intermountain West, such as Houston, Austin, San Antonio and Nashville.
Although many of the new economists believe these areas are
generating mainly “crummy” jobs, employment is expanding in higher-wage
areas such as energy and manufacturing as well as services and even
high-tech.
Which I might be doing in 2015, in a DIY sort of way. Emigrate to America in 2014, get settled in, healthy, and relaxed, then launch a high-tech company in my barn, and try to persuade other disgruntled engineers to follow.
The price of this enlightened progressive profit-taking largely falls on working class Californians, and traditional industries, which get stuck with exorbitant energy prices.
This.
There's much more to say, but I woke up late this morning and need to get going now.
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