Arthur Hanson
Well-known member
Being primarily an economics guy, I look at Silicon Valley from a slightly different angle than most. I see the public pensions as a severe threat to Silicon Valley coming out of left field. Especially in the SF bay area, the pension crisis is most severe. Adding to this is the increase in longevity due to technology that adds a very severe strain to the actuarial tables. Public employees in general are not even satisfied with the over the top pensions with medical they get at a far earlier age than most and that's if most others get a pension at all. They feel the need to game and spike the system in every way imaginable to get benefits that will break even the strongest actuarial planning. This tidal wave of huge expenses that will extend for generations could dramatically alter the cost and social structure of the many government bodies that comprise Silicon Valley. This factor will definitely be taken into account by any business operating in Silicon Valley and the US in general. Will the US end up surrendering its leadership in technology due to this hidden massive tidal wave of expenses? What will this do to the social and support structure of Silicon Valley? Changes are coming and I would hate to see Silicon Valley go through what the shopping malls are going through now due to government management so bad its accounting is a combination of Bernie Madoff, Enron and WorldCom accounting methods. This cannot be good for Silicon Valley, especially when there are other areas all vying for a piece, if not all of the action. Technology has created the power to disrupt every aspect of our lives world wide at an ever increasing rate. With the rise in transportation infrastructure and communications reducing or moving operations is getting ever easier and more and more seeking out the most hospitable environment. I hope Silicon Valley can adapt to this as well as it has adapted to many changes before.
Pension Tsunami
Pension Tsunami