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Or its in a non-productive asset like being parked in vacant real estate in a world city or any number of other non-productive assets that remove it from circul
by jackvalentine 10y ago
Or its in a non-productive asset like being parked in vacant real estate in a world city or any number of other non-productive assets that remove it from circulation.
- nickff 10y agoThe money is not "parked" in the real estate, it has been transferred to the seller.
- nitrogen 10y agoBut the ongoing value derived from use of the real estate is lost. If someone were living there, both the seller and the local economy would benefit -- the seller got paid for the real estate, and the local economy benefits from the resident's own economic activity.
- prostoalex 10y agoAs long as property taxes are paid on time, the local economy has probably extracted bulk of renumeration from that property. In the age of giant corporate retail chains and Amazon, how much of the locals' spending goes towards their local butcher, seamstress, blacksmith, cobbler, milkman and vacuum repairmen anyways?
- jackvalentine 10y agoThat's true and I chose a poor example.