scholars Jenny Chan and Pun Ngai focus on disappointment and despair, rather than absolute immiseration, as etiologies

In the following years, before the Facebook IPO, Milner vehicles DST and Mail.ru increased their positions in Facebook, pleasing their investment partners by offering to take their shares off their hands if they lost their nerve, and pleasing Facebook by financing an 8–10 percent stake in the company without asking for anything other than a seat on the ride. With the IPO, they netted billions of dollars in profit. The London Sunday Times named Alisher Usmanov not only Russia’s richest man but also, with his London mansion, Britain’s richest man, displacing Indian steel magnate Lakshmi Mittal.27 Usmanov channeled his generic iron-ore monopoly profits into Anglophone brand plays, including the Arsenal Football Club (30 percent) and Apple, pushing $100 million into the iPhone maker and putting a stop to a dangerous and somewhat unexplained slide in investor confidence.28 Milner continued pumping up tech valuations, investing in Facebook-based game maker Zynga, discount coupon site Groupon, and music streamer Spotify. He put $380 million in Twitter, and in 2011 he teamed with famed Silicon Valley angel Ron Conway to offer $150,000 to each and every start-up in the Bay Area tech accelerator Y Combinator, laying down a bet on the whole regional ecosystem.

When it came out in 2017 that a significant amount of DST’s capital originated with the Russian state, the news yielded shrugs in the industry.30 No one could suck that kind of money out of the country without close ties to the government.vii And besides, sovereign wealth funds invest in Silicon Valley all the time. Saudi prince Al Waleed bin Talal made a crucial nine-figure investment in Apple in 1997.31 SoftBank, one of the biggest investment funds hunting in Silicon Valley, got most of its game-changing $100 billion Vision Fund from Gulf monarchies.32 Why wouldn’t Putin want to put money in Facebook? As far as the gangster state was concerned, there was no better place to allocate the nation’s cash. Based on the numbers, it’s hard to disagree, and in Silicon Valley, which Milner now calls home, he’s in good standing in the highest reaches of the capitalist elite. [...]

When one of the Sac Street dealers told the Mercury News that he was just another businessman in the Bay Area, his specific references might have been lost on the average reader. “You expect me to work at McDonald’s or Home Depot?” he asked reporter Sean Webby a couple of years after the shopping center opened. “I make more here in an hour than I would make there in a week.”41 McDonald’s and Home Depot weren’t just arbitrarily chosen mass-market businesses dependent on low-wage service work: They were also two of the big tenants at the Ravenswood 101 Retail Center, along with (no surprise) Starbucks and three big-box electronics retailers. The state authorities and their friends at the Department of Commerce did expect him to work at McDonald’s or Home Depot, or Togo’s or Taco Bell, or Good Guys or Best Buy or Office Depot. Precisely so. That’s where EPA was adding jobs in the twenty-first century, and there wasn’t anything subtle about it. In addition to Hoover’s federal department and the retailers, the center’s inaugural plaque acknowledges Bank of America and the David and Lucile Packard Foundation. At the very bottom: ORIGINAL SITE OF RAVENSWOOD HIGH SCHOOL.

In East Palo Alto, as in the rest of the world, capital called forth the labor it needed at a price it was willing to pay. There’s no reason we need to pretend that authorities at any level wanted everyone in LouAnne Johnson’s bused EPA class to succeed, for none of them to be left behind. Capitalists needed low-wage employees because that’s where the growth was. If all the kids in East Palo Alto became engineers and doctors and lawyers, who would fill the hundreds of jobs at the new IKEA by the freeway? In 2003, the hulking furniture sales warehouse filled out the Ravenswood 101 center, thrilling local shoppers in a way big box electronics resellers never could. It was the age of brands, even if the brands were attached to DIY sheets of plywood. Domestic IKEAs were few and far between at the time. The store’s serve-yourself model reduced the number of higher-wage delivery, warehouse, and sales jobs, leaving mostly deskilled service gigs with compensation near the legal minimum. Locals protested during the zoning process that they wanted a grocery store instead—as with a high school, East Palo Alto went without—but leaders were swayed by the retailer’s promise of at least $1 million a year in tax revenue.55 The store opened its doors to what the San Francisco Chronicle described as a “rampaging horde.”56 Say what you will about drug users; they don’t line up 5,000 deep to score. Fifteen minutes on foot from Sacramento Street, the new million-dollar spot was blue and yellow.