&quot;regional effects&quot; meaning # of employees or gross $ of payroll.<p>who employees more people: FB or the countless &quot;on the come&quot; app cos &#x2F;free-to-play game cos that are paying FB $10 per app install?<p>VC money is sucked up from around the US (via LP&#x27;s as foundations, etc) and deposited in SF for use in Payroll for companies that are loosing money, and transfering VC money to FB, that inflates FB valuation, a valuation that VC&#x27;s feed back into their models of expected returns on investment, there by increasing investment.  In this way the positive feed back loop is completed.... and $3,500 per mo 1-Bedrooms are created as a side effect ;)<p>the payroll base of a profitable company is constrained by its real revenue.... the payroll base of an unprofitable company is not restrained by its revenue.