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.
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...
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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...