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Forgive me for being obtuse. You said: > As housing prices and commute times go up so does the price of everything that involves human labor. Which in my esti
by oceanghost 7y ago
Forgive me for being obtuse. You said:
> As housing prices and commute times go up so does the price of everything that involves human labor.
Which in my estimation was a restatement of the Adam Smith quote. You approached the issue from a different direction... but it all works out in the end. Housing prices cannot increase without the capital to drive them up. I was merely agreeing with you in quote format.
- dredmorbius 7y agoDifferent mechanisms. The Smith quote is a demand-side dynamic: increased wealth > increased activity > increased demand. Sprawl is a supply-side dynamic, increasing the minimum viable cost floor: greater sprawl, greater frictions, transport and commute delays, congestion and travel costs. For a given unit of labour you're incurring a greater overhead in (dead) travel time. Efficiency is decreasing, but labour demands its minimum viable wage.