Why Silicon Valley Will Always Be A Magnet For Business And Young People?

 

    Source: Vogue Magazine

A lot of news outlets have been talking about how people are leaving California to places like Austin in Texas, Denver in Colorado, or Phoenix in Arizona. I found it interesting that the San Jose Mayor is jumping into the fray and talking about businesses leaving California. Please see the link below. 

SAN JOSÉ MAYOR SOUNDS WARNING AS ANOTHER SILICON VALLEY COMPANY MOVES HEADQUARTERS

He is blaming the state legislature for high taxes and too many regulations. My question is what has the City of San Jose done to make housing affordable. Are they doing enough? But this is beside the point. Despite all the negative news, I think Silicon Valley will continue to attract business and young people. Here is why.

Silicon Valley is Unique

Silicon Valley has the allure to draw so many new businesses and people to come to California. First, it is the weather. Secondly, it is the schools in the areas i.e. Stanford, UC Berkeley, and San Jose State University, etc. Thirdly, it is the culture - people and cuisines from all over the world.  

Infrastructure

The tech expansion after 2010 has drawn a lot of new businesses and people to come to California. With so many people rushing into California in such a short time, the existing infrastructure cannot handle it. The lack of housing drove up home prices and rents. And the number of cars on the roads far exceeded what the infrastructure can handle. A one hour commute became a two hours commute. Not to mention that there might not be enough water supply for the growing population.  With some of the businesses and people moving out of Silicon Valley, it provides some relief for the government to do some planning. This is assuming that the State Legislature get their acts together and do it right.

Location

Silicon Valley is well situated on the leftmost part of the country. With the continuation of growth in Asia, we can expect California will continue to play an important role as a bridge to the east. I heard people who moved out of Silicon regretted their decision - the cost of living is not necessarily cheaper and the traffic is not any better. 

New Businesses Will Always Emerge

In the '90s, a lot of the manufacturers moved to Asia to lower their costs. They were then replaced by a lot of internet companies. After the internet bubble burst, social media companies came along. There is always something new. People will continue to come to Silicon Valley as they see it as the haven for startups and the land of opportunity. The departure of some businesses is giving Silicon Valley a much-needed break so it can grow again.