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I would argue that only the most inelastic items (aka, rent) would see a long-term price increase. Production of other things can increase to meet the demand, a
by sdenton4 8y ago
I would argue that only the most inelastic items (aka, rent) would see a long-term price increase. Production of other things can increase to meet the demand, and, in fact, you'll end up with a more vibrant economy overall. One can argue that this is the post WW2 US boom in a nutshell.
- maxerickson 8y agoThere's no fundamental reason that housing is inelastic. It's relatively inelastic, but not over medium terms, especially in a place like the United States that mostly has lots of room to build things.