The recent collapse of Silicon Valley Bank has highlighted the complex relationship between the tech hub and government. Despite Silicon Valley's anti-government sentiment, regulators were forced to step in and guarantee all deposits at the failed bank when venture capitalists panicked and advised their tech startups to pull money out, leading to a bank run. This move has sparked a sense of mistrust across the political spectrum as many argue that the speculators and manipulators who took absurd risks should be held accountable.
Silicon Valley's ties to the government run deep - the region was established as an outpost for defense contractors in the Cold War, and the internet was a government-funded project. The passing of an obscure addendum to the federal communications law known as Section 230 also played a major role in the tech boom, as it made it possible for online publishers to avoid liability for user contributions.
The collapse of Silicon Valley Bank has brought to light the often-overlooked reality that the tech hub heavily relies on government support. Though Silicon Valley will undoubtedly continue to try to maintain its absurd charade that it does not need the government, it will become increasingly difficult over time.