This limits growth. When automobile manufacturing was a cutting-edge industry, not only did the entrepreneurs get rich and the workers earn a decent salary, but whole regions boomed. Between 1900 and 1930, 1.3 million people moved to Detroit, quintupling its population. By contrast, the combined populations of San Mateo and Santa Clara counties in Silicon Valley have grown by only about one-third during the 30-year computer boom. The pace of growth is even slowing down and has been below the national average for the past 20 years. There?s nowhere for extra people to go. Ironically, the pioneers of high technology have forgotten some of the basic technologies that make modern prosperity possible?detached homes with small yards, single family homes that share connecting walls, elevators that allow for the construction of very tall buildings where demand is high. The result is that the Bay Area is weirdly inefficient at translating high-end employment into broader job growth. Comparing the San Jose metro area (which includes Silicon Valley) to Greater Houston, Ryan Avent observes that Houston creates twice the number of total private sector jobs per new technical jobs as San Jose.
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