>The downside of employee protections is that it makes companies more reluctant to hire. And also once hired, the salary to be offered is reduced to cover the estimated current value of the future employee protections.
Yep, that why software engineers in California and New York, where there are a lot of employee protections, don't get paid as much as SWEs in the Midwest or the South, where there are less... Right?
Or maybe the real economy is more complex than the kiddie models you were taught in Econ 101?
The WARN act for one, which Musk may have violated. California also mandates sick leave and family leave for both parents of a newborn child.
When California says you can fire an employee for any reason, what they really mean is any reason except for a bunch of reasons we've decided are unacceptable.
Silicon Valley, New York, and arguably Texas have been the hubs of computing innovation as long as there has been a commercial computer industry. Other tech hubs have sprung up, but we're looking at forty years of unceasing domination here. Innovation hubs move when new industries arise.
Innovation hubs have been in China, Middle East, Venice, London, etc.
The printing innovation lasted around 300 years. Steam engine another 150 years. The industrial revolution less than 100.
How long do you think computers will dominate major innovation? And if it does, will the innovation hub stay in SV ?
What happens if biotech takes over? MRNA tech ? Driverless cars ? VTOL ? Rocketry or Space Tourism ? ML or low-code apps changing the dev of software as we know it today ?
Do you see any of those hubs in SV ? Are they in SV today ?
Now you're moving the goalposts from decades to centuries, across which it is slightly absurd to pretend that 'innovation hubs' have anything to do with workers' rights. Changes in culture happen regardless of where the innovation is, and when you start talking about centuries it's pointless to try to measure the effect of worker protections on salaries. There are just too many variables over that amount of time. Pretending you can effectively isolate one is ridiculous.
Regardless: yes, all of these things are in SV today. If any of them proves to revolutionize society in our lifetime I think you'll find SV will retain its status.
My only note it is that isn’t 40 years. For SV it’s more like 60 years (going back to the founding of Fairchild) or even longer if you want to go back as far as HP and other radio shops.
For NYC, it’s even longer. IBM has had a major NYC presence since at least the 30s (and obviously its main HQ is less than 40 miles from midtown)! Bell Labs/AT&T was based in Manhattan before moving to New Jersey and obviously is still in the NYC are. And that goes back to the 20s I think.
Not to mention other NYC and NYC adjacent companies like GE. So we’re going back 100 years or more for NYC and 80 for SV.
Xerox’s history combines both areas.
And as you said, Texas has a strong history too with the Motorola stuff and Silicon Prairie.
Historically speaking, Seattle is a relatively new entrant in computing and innovation, only really being a hub for 40 years or so (unless you count Boeing and then it back over 100 years), but is the home of two of the biggest companies of the last 50 years, Microsoft and Amazon.
Dozens and dozens of cities all over the world have tried to be the Silicon Valley of X and none have succeeded. And New York is extremely unique as a global center in dozens of different industries from finance to media to fashion to the arts.
Obviously things could be disrupted. But both of these areas have been innovation hubs for over 100 years, which given the short history of this country, is remarkable.
Yep, that why software engineers in California and New York, where there are a lot of employee protections, don't get paid as much as SWEs in the Midwest or the South, where there are less... Right?
Or maybe the real economy is more complex than the kiddie models you were taught in Econ 101?