Sunday, January 24, 2021

Regarding the "MINI" exodus from Silicon Valley for Cheaper cities

 I live near enough to Silicon Valley that I drove up there in 1987 and bought my first serious computer which was an IBM Clone there in 1987 as well as an Epsom Color computer. I think the two of them cost around 2500 dollars then in 1987. So, I know a little about California and it's tax base.

California has things like Medi-Cal where even if you own a business you can get this Medical Care if you are married and have children and your income is low enough. But, to pay for programs like this our taxes (sort of like New York State) are higher than most other states too. So, if you have a business in California or Silicon Valley you are going to be paying more to operate your business always than you would in the other 49 states likely with the exception of New York State.

However, Silicon Valley really runs on people from places like India that have Master's degrees or higher in Computer Science and computer Technology of all kinds. But, Trump has blocked anyone of this caliber from coming to the U.S. to work the last 4 years time. So, since Silicon Valley is having to pay much more for American programmers who are much more spoiled than Foreign Programmers generally speaking and who are generally much more expensive to hire in the first place, Silicon Valley companies are being forced because of coronavirus and expenses in general to move to less expensive cities and localities within the U.S. in order to economically and physically survive as companies.

The first to move was Elon Musk's Tesla to other locations in the U.S. and around the world including a location I believe in China. This business sort of led the way. Why?

Tesla hires mostly computer engineers mostly in software and hardware more than anything else because 90% to 95% of the people building their cars are actually robots not humans. So, they would be affected by Trump's preventing IT Graduates from India especially from being hired and placed in the U.S. anywhere.

Coronavirus has affected everyone's business in one way or another and Elon Musk has always been known to be deadly practical in regarding running any business because he tends to the Autistic Spectrum of CEOS who are very focused on the details of what makes a successful business and who tend to be the most like Workaholics in the world in this sense where they never really stop thinking about perfecting their businesses likely 24 hours a day even when they are asleep.

So, he would be very aware of how expensive it is to run any business in California and likely one of the first to move as a result. But, once again the real problem was caused by Trump preventing foreign programmers from working in the U.S. by preventing them from getting work visas.

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