Now swap "Austin comedy scene" for "Silicon Valley VC/billionaire class": They think threatening to leave California over the 5% tax (or regs, or "woke") is building leverage—"We'll take our money, talent, and innovation to Texas/Florida/Miami. California will beg us to stay." But California's broader economy (and the global tech/investment machine) treats geography functionally: Talent is in the Bay because of universities/networks, not because of all in podcast. Capital is global. Startups will still cluster where the engineers are. No one's coming begging. The state will consume the innovation at arm's length (remote founders, satellite offices, global LPs) without granting the old deference. And the cruelest parallel: Many of these "disruptors" are nostalgic for the old California system—low friction, massive public subsidies, minimal accountability, automatic cultural goodwill. They want the state to resume the 90s–2010s deal: let us extract unchecked, give us hero status, don't ask questions.
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The Austin comedy collapse is funny because it exposed a fundamental misread: they thought they were building leverage when they were actually burning it. Hollywood treats geography purely functionally — Canada is cheap labor, New York is a writer farm, Atlanta is a tax haven. None demand ideological buy-in. Austin tried to be a *branded alternative* with political identity. But Hollywood doesn’t need validation of your reasons for leaving. It needs interchangeable talent that slots in without baggage. The comedians assumed the move itself was the value — that Hollywood would come begging. Instead, it kept hiring people who never left in the first place even if they were in NY, Atlanta or Toronto. Now they’re stuck: can’t leverage Austin (collapsed), can’t easily return (without admitting failure), can’t get validation. The punchline: they wanted to be a power center while operating like refugees. Hollywood called the bluff by not caring.
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5% is less than gas fees
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