The Myth of Valley Wages

http://pajamasmedia.com/edgelings/2009/08/14/the-myth-of-valley-wages/2/

What the numbers don’t show you is that, the big established companies aside, Silicon Valley is economically very ill. Not mortally — at least not yet — but the Valley of myth, the Valley that sparked the digital revolution, that drove much of the new job growth and new wealth in the U.S. over the last two generations, and that transformed our daily lives forever, is now a fading shadow of its former self.

Government regulation (Sarbanes-Oxley, options expensing and now the White House’s insane plan to crush the venture capital industry under banking-type oversight) and Washington’s current anti-Small Enterprise/pro Big Business animus is quickly destroying the Valley’s historically unique environment for growing entrepreneurs and new companies. There is no available venture capital, the cost of running a start-up in terms of time and money wasted on government paperwork (and probably taxes soon as well) is through the roof, and there is no exit strategy – i.e., a liquidation event where the risk-takers get rewarded for their success, such as an IPO – other than selling out to one of the big companies.

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