5 ms·
The argument is not trickle down economics although, it's wealthy demand traps. Ex: "If rich people can't buy ferraris, and there is a limit to 100 BMWs and 1
by novok 7y ago
The argument is not trickle down economics although, it's wealthy demand traps. Ex:
"If rich people can't buy ferraris, and there is a limit to 100 BMWs and 100 civics, then rich people will boost the price of all the BMWs and Civics and all you can buy is really old broken down chevrolets, if you can buy one at all."
"But I bought my civic when it was an affordable price, and I have a special old person subsidized gas price, why do we need build more civics, ferraris and BMWs for all of these new immigrants?! Why can't they just stay in their own country?"
- slg 7y agoMy point is that housing isn't all easily substitutable Ferraris, BMWs, and Civics. There are also private jets and mopeds. Jets and mopeds might both be forms of transportation, but a drop in the price of jets isn't going to impact moped prices.
- novok 7y agoMopeds are illegal to build although (SRO) and the minimum legal house is a civic, and nobody protests the building of local large single family jet mansions. And you haven't seen the used market price of a porsche in a market with a lot of them ;) Berlin 15 years ago is one example of that. And what people call 'luxury jet housing' is usually really sad 600sqft housing that would be called honda fit housing elsewhere.
- slg 7y agoThe analogy is getting strained at this point. Not being able to build new SRO housing doesn't mean we have to knockdown all the SROs and replace them with high rise luxury condos. That might even increase housing density if a 5 story building is replaced by a 15 story building. That doesn't mean the people displaced by the new construction will benefit in any way.