As the United States economy tanks, I’ve noticed quite a bit of arrogance amongst Silicon Valley types who are “This isn’t our bubble.” Many have expressed a sentiment that the serious problems in the greater market would not spill over into the Valley economy. VCs raised nearly $35 billion last year in a show of confidence.
But anybody with common sense knew that such confidence was foolish. Silicon Valley’s economy is part of an “open” platform called the United States economy - it’s not a “walled garden.”
I’m starting off the new year with a new feature: Dramanomics. Economics is one of my favorite subjects and this year I plan to look more at economic issues. In many cases, I’ll try to relate them to the world of technology startups, as I’m doing with this post.
The possibility of a recession in the United States in 2008 is certainly going to be one of the most prominent headlines in the first part of this new year. Articles about the faltering US economy have been included in recent Drama’s Roundup posts and for good reason: even if the downturn is less dramatic than a recession, as the Economist pointed out in a fantastic article, it’s likely that most Americans are going to feel like they’re in a recession: