The Valley's techies live in a bubble of prosperity. Optimism has its advantages, but some worry the region may lose touch with the rest of the world, BusinessWeek writes.
In Silicon Valley, all the Sturm und Drang of 2011 seemed as relevant as the Cricket World Cup. High unemployment? Crippling debt? Not in Silicon Valley, where the fog burns off by noon and it’s an article of faith that talented, hard-working techies can change the world and reap unimaginable wealth in the process. “We live in a bubble, and I don’t mean a tech bubble or a valuation bubble. I mean a bubble as in our own little world,” says Google (GOOG) Chairman Eric Schmidt. “And what a world it is: Companies can’t hire people fast enough. Young people can work hard and make a fortune. Homes hold their value. Occupy Wall Street isn’t really something that comes up in daily discussion, because their issues are not our daily reality.”
It was never clearer than in 2011 that Silicon Valley exists in an alternate reality—a bubble of prosperity. Restaurants are booked, freeways are packed, and companies are flush with cash. The prosperity bubble isn’t just a state of mind: Times are as good as they’ve been in recent memory. The region gets 40 percent of the country’s venture capital haul, up from 31 percent a decade ago, according to the National Venture Capital Assn. And the U.S. Bureau of Labor Statistics recently reported that growth of the area’s job market led the nation, jumping 3.2 percent, triple the national rate. Even real estate, a cesspool of despair in the rest of the country, is humming along. It’s next to impossible to get a table on a weekend night at the Rosewood in Menlo Park, a watering hole for Sand Hill Road’s technology financiers where the olive-oil-poached steelhead goes for $36. The closest we got to “Occupy: Cupertino” was the line outside Apple stores in October for the iPhone 4S....
Find out more at http://www.businessweek.com/magazine/its-always-sunny-in-silicon-valley-12222011.html
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