7 ms·
>What effect does this have on the entrepreneurial side of things here? The effect is that an already privileged group is more privileged than they previously
by whamlastxmas 10y ago
>What effect does this have on the entrepreneurial side of things here?
The effect is that an already privileged group is more privileged than they previously were (financial flexibility to try a startup), and those less privileged are driven away and forced to relocate.
Here's my unformed thought from this: are startups hurting progressive/socialist movements in the US? Their benefit is that they're lean and efficient. They do more with fewer people and fewer resources. This means fewer jobs.
- lsc 10y agoCalifornia does a lot to privilege long term homeowners over new buyers, which is the reason that the problem can't be solved simply by building density. In a very real way, existing, long term homeowners are extracting value from newcomers, as the article points out, in part by pushing more of the tax burden on to new construction, and in part by restriction new construction entirely, which pushes up prices, without significantly increasing the tax burden for existing owners. Many of these existing homeowners would otherwise been displaced by the boom. I have met many people working in service jobs who live in half million dollar plus houses. The tax scheme makes doing so possible; they are still paying taxes on one tenth of that... That was the intent of prop 13. People who don't own and live outside of rent control cities have cause to complain, but the situation is set up to benefit existing owners. The second paragraph of your post is more complex, and I don't have time to address it.