Yes, logically those are the two choices. But I don’t think Palo Alto is going to choose to get rid of the companies. If they do, their tax base will shrivel and they’ll have a hard time paying city employees and paying off all the pensions they’re already obligated to fulfill. I mean, they already have a hard time paying them enough money because of the cost of housing. If tax revenues fall, too, they’re going to be in real trouble. Especially in a community like this that also has a city-owned golf course, city-owned airport, city-owned pools, city-owned arts centers, etc. The reality is that people aren’t going to be willing to let go of all those services.

Plus, the reality is that if all the companies left PA, all the housing prices would plummet. People who bought houses in the 70s and 80s for under 300k and which are now worth $3–5M aren’t going to be happy seeing those prices plummet. Those prices are propped up by the high demand for living here, which comes directly from the thousands of people who work here. If they go, so does their demand.

And then, too, when it comes down to it- what kind of insanity is it to be trying to kill high paying jobs and forcing companies out of town when the rest of America is bending over backwards trying to attract those companies? Every city across the country would die to have this problem. They would love to not worry about how they’ll fund their schools, how they’ll deal with those who are unemployed, where they’ll find the money for their parks, etc. Everyone else in the world is looking at Palo Alto and scratching their heads at the thought of a city that thinks its grand solution is to slaughter is the golden goose.