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Why does the author look at each city as a closed system? If we improve one city's community and rents go up due to increased demand, that necessarily means re
by smallgovt 8y ago
Why does the author look at each city as a closed system?
If we improve one city's community and rents go up due to increased demand, that necessarily means rents went down somewhere else in the US. So, net-net, landowners didn't necessarily get richer.
Furthermore, when the non-upgraded city eventually decides to invest in improving their neighborhood, people will move back, and the system as a whole will equilibrate.