The problem is that the Bay Area has too much money. Period, end of story. You can't fix things by going unregulated. Douglas Rushkoff talks about how Intern

The problem is that the Bay Area has too much money. Period, end of story. You can't fix things by going unregulated. Douglas Rushkoff talks about how Internet companies these days are extractive, and Facebook is the prime example of this. (I'm not demonizing Facebook in any way, I respect the hell out of them.) The nature of how they make money is that they have users from around the world, and all their money essentially flows from those countries of origin into Menlo Park. It's extractive, and there's more money flowing into Menlo Park than would have normally occurred without a global economy. The same goes with Google, LinkedIn, Microsoft, etc. There's an inordinate amount of money flowing into the Valley because of this globally extractive nature of the Internet and that's the problem. So now, Facebook et al can afford to hire very good engineers. Friends of mine with 8-10 years of experience are making $180-200k with 15% bonus and $350,000 in RSUs over 4 years. That figure is unbelievable. Over 4 years they are making over $1,300,000 each. And they are good but run-of-the-mill engineers that passed the interview. I'm assuming all the engineers at places like Netflix, LinkedIn, Salesforce, Google, etc are all making equivalent amounts of money, or more. How can anyone in a "normal" job compete against this? My kids' daycare teachers make $40-50,000/yr. Two Facebook engineers make more money than the entire daycare that my children go to. Of course there is going to be rampant inflation across the board when there is so much money circulating in this area. Things like Uber can thrive because it's cheap relative to time. So, deregulation is not the answer because it will just be exploited by the rich. Do you really think that rampant building across the The only answer is for companies like Facebook to distribute their workforce back around the US or around the world. Having Silicon Valley being the money capital of the world is causing this problem, just like it does for Wall Street. Facebook, Google, etc, need to move their workforce around, with real equal development centers in the MidWest, in the South, on the East Coast, in Europe, Africa, Asia. This will distribute the money and cause income inequality to abate here. This is the only answer. You can't stop it with deregulation, or even regulation, because the money won't stop flowing.