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we often hear that government created the internet its funny what a myth that is that government really had anything to do with creating the technological revolution the real story is is that when government was really involved in dominating the technological sector back in the 1950s it wasnt really producing anything for the American economy but its when government decided to get a little smaller through the tax rate cuts of the 1960s thats when Silicon Valley took off lets go back to the 1950s when you really start having the valley under Frederick Terman start to expand you start to see lots of new companies coming in there with today we would call startups they didnt call them that of Engineers coming to San Jose California to start making things virtually all of these people were paid in under government contracts so for example Shockley semiconductor easily the most famous and important Silicon Valley company in the 1950s they were mainly interested in producing guidance sy