By that I don't necessarily mean everything should be outsourced to India - even Vancouver (same language, same timezone, similar cultural background) has drastically lower developer wages than SFBA & plenty of talent.
Unconstrained by non-competes?
The theory is that the Bay area has a huge liquid pool of talent, and that not being able to hire critical talent at all is even less "economical", in that you're less likely to be able deliver your product or service to market.
California is also a powerhouse of a state. It has the 5th largest economy in the world, and the most productive state government in the U.S. Ambitious projects actually get attempted and built in California unlike so many of the stagnant states in the U.S. Another reason of why SV and not Idaho is the academic research environment of the bay area and the ease of recruiting the excellent talent that comes out of California's universities every spring.
If you are willing to pay 10-15% above market rates (which is still 1/2 of SFBA market rates) there is no shortage of senior engineers in Berlin.
Still I appreciated two ideas buried in this: One, that he is (maybe slyly) pointing out that this bubble is a lot like the last bubble. And two, that for every Jobs who shows up hell-bent on a meteoric rise (and who either succeeds or crashes spectacularly) there are always plenty of Wozniaks quietly and steadily moving the actual work along.
I would tend to agree that higher ed seems to be in a dangerous upheaval or crisis. For SV I don't see it... not yet anyway. But I'm watching from afar so whadda I know?
Either way, I wouldn't worry too much about the effects though... either of this piece or all the ones rightly pointing out the downsides. Seems like (maybe sadly) they tend to have no effect either way.
Of course, this article is more about SV as a cultural place and ideal, and not a political force, more about Manhattan than Wall Street. But it still brushes off high rents as normal, something ever-present. Meanwhile, a San Jose city councilman and his family are evicted because of high rents:
https://sanjosespotlight.com/san-jose-housing-crisis-council...
I grew up in San Jose. (I remember when we were the capital of Silicon Valley, not San Francisco.) We now live in a very different Bay Area from that of the irrationally exuberant '90s. I think positive profiles of SV have to be tempered by realistic coverage of the many, many problems this place is experiencing. At the very least, acknowledgement of these problems- and not breezy dismissal- can spur change to make things better. So we can build a Silicon Valley worthy of these utopian fantasies.