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The reason why poor neighborhoods are profitable is because the city doesn't spend money on them. If the city spent money on them, they'd be less profitable. T
by iopq 10y ago
The reason why poor neighborhoods are profitable is because the city doesn't spend money on them. If the city spent money on them, they'd be less profitable.
There's no reason to expect that the city spending more money on a neighborhood increases any tax returns.
- YokoZar 10y agoThese are property tax returns. Property tax returns come from property prices. Making a neighborhood nicer raises property values, and thus prices. The article is making the observation that it's much easier and cheaper to improve bad neighborhoods than rich ones. Painting crosswalks and planting trees is cheap, but rich neighborhoods already have those things.
- huherto 10y agoSo it is an application of the Law of diminishing marginal returns ?