There is no mystery…

Ships Abandoned in Yerba Buena Cove San Francisco during the California Gold Rush 1849 (public domain image from Wikimedia)

…as to the cause which so suddenly and so largely raised wages in California in 1849, and in Australia in 1852. It was the discovery of the placer mines in unappropriated land to which labor was free that raised the wages of cooks in San Francisco restaurants to $500 a month, and left ships to rot in the harbor without officers or crew until their owners would consent to pay rates that in any other part of the globe seemed fabulous.

                              …Henry George; Progress & Poverty Book V Chapter 2

George goes on to describe how gold mining was organized, and why it was the form of tenure rather than just the availability of gold that raised wages:

[I]t was by common consent declared that this gold-bearing land should remain common property, of which no one might take more than he could reasonably use, or hold for a longer time than he continued to use it. This perception of natural justice was acquiesced in by the General Government and the Courts, and while placer mining remained of importance, no attempt was made to overrule this reversion to primitive ideas. The title to the land remained in the government, and no individual could acquire more than a possessory claim. The miners in each district fixed the amount of ground an individual could take and the amount of work that must be done to constitute use. If this work were not done, any one could relocate the ground. Thus, no one was allowed to forestall or to lock up natural resources. Labor was acknowledged as the creator of wealth, was given a free field, and secured in its reward.

— Progress & Poverty, Book V, Chapter 2

And now I tripped over a 2002 paper (From Commons to Claims: Property Rights in the California Gold Rush by Andrea G McDowell) that provides a lot of detail and background supporting George’s assertion. A particular mining claim might be 100 to 900 square feet. A miner would work it for a few weeks, then expect to move on to another one.  Thus the first miners to arrive had an incentive to avoid land monopoly, because they’d be looking for land again in a short while. “[The miners’] position can be summed up as a rejection of a fee-simple interest in mining claims on the grounds that this would result in the monopoly of the diggings by capitalists and the exclusion of individual miners from the chance to strike it rich.”

There’s a lot about how various mining districts managed their operations — certainly not all the same and often poorly documented, with a lot of the information coming from personal journals and correspondence rather than official sources.



Who Owns Silicon Valley?

View of Silicon Valley in 2012, showing major employers
Vintage 2012 view of Silicon Valley showing major employers. “Silicon Valley IT Company Topography” by Wayan Vota is licensed under CC BY-NC-SA 2.0

Or more precisely, who owns Santa Clara County? With the cooperation of local officials including the County Assessor, a consortium including the Mercury News has determined who owns the greatest value of real estate in the County.  Tech giants Alphabet and Apple are second and third, but the number one owner turns out to be Stanford University.

Some other important information:

Proposition 13 is mentioned, but the incentive which keeps old people in their homes which become unaffordable to most families is not explored.

Local opposition to development, preventing housing construction which might otherwise occur, is discussed.

Stanford’s existing holdings include commercial property, but their current acquisitions seem mainly to provide housing for some of their elite employees.  These people are able to buy houses at favorable prices (relative to the area), however Stanford retains the land and retains the right to buy the house back eventually. Local non-Stanford people complain, of course, but do not offer to sell their properties at a discount.

Apparently California practice is to assess all real estate, even that which is exempt.  This enables meaningful estimates of ownership even tho $13.3 billion of Stanford’s $19.7 billion in real estate is exempt.

Several local officials were interviewed.  They don’t discuss how it feels to know that your opposition, Apple and/or Google, has control of much of your communications and might be monitoring them.

Well worth a read for those interested.


Silicon Ocean


Blueseed concept proposal
Blueseed concept proposal, one of several at their site

Blueseed plans to start operation next year of a floating city, safely outside the twelve-mile limit of U S jurisdiction, where a thousand innovators can work pretty much without the immigration hassles imposed on domestic companies.  The “land” of the ocean is of course free to anyone who wants to use it, but there are big expenses in building and operating the platform.  Still, they estimate living costs comparable to those of pricey San Francisco (albeit for much smaller living space.)  If land in Silicon Valley was cheap, the ocean site would seem expensive, but it isn’t, so it doesn’t.

They’re entirely legal, or so it appears, and don’t seem to avoid Federal income tax altho California taxes might not apply.  Blueseed  “will work closely with the U.S. Customs and Borders Protection towards an agreement that follows all applicable US laws and regulations,” and it appears access will be from the California mainland so everyone not a legal U S resident will need some kind of U S visa.

But being outside U. S. territory, flying a flag of convenience, what defense has Blueseed against whoever might want to attack them? Not to worry, “pirates … don’t exist near California…” and presumably attacks by government authorities are no more likely at sea than within the country.