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It’s highly likely, though. Supply and demand: less demand for real estate and employees means prices will be lower, which in turn means others will buy more.
by mikeash 8y ago
It’s highly likely, though. Supply and demand: less demand for real estate and employees means prices will be lower, which in turn means others will buy more.
Economics isn’t a zero-sum game, but neither is it a completely uncorrelated bag of stuff.
- ineedasername 8y agoThis view of supply and demand is incomplete. Under your line of thinking there would never be issues of over supply. Which is of course wrong. During the financial crisis there was too much supply of housing that wouldn't be purchased at any price. See farming as an industry where too much supply can result in the need to sell product at a loss. Supply and demand is not some magical system that always balances. Artificial interference and externalities can absolutely throw it into negative-sum territory.
- mikeash 8y agoThat’s true in general, but we’re talking about 25,000 jobs in a thriving metro area of 20 million people. The situation isn’t anywhere near these extremes.