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>It's a real market, it's just heavily supply constrained. >Conventional market theory assumes that supply will rise to meet demand, but between green belt law
by bsanr2 6y ago
>It's a real market, it's just heavily supply constrained.
>Conventional market theory assumes that supply will rise to meet demand, but between green belt laws, NIMBY movements and the difficulty of crating new land where people want to live, that's often a big problem in property markets.
So... It's not a real market. Would we call a situation, wherein rice is $100/bag because local oligarchs have taken the bulk of imports/production and sequestered it in some private warehouse, a "real market"? Because that's essentially what's happening here.
>How do homeless people maintain wealthy people?
If your labor produces wealth that someone else claims, forcing you to become unhoused, your homelessness is intrinsically connected to their affluence.
- epistasis 6y agoYes, these are "real" markets and this is exactly how real markets behave when they are not well regulated. Vancouver and other cities in the West Coast have chosen regulations that ensure that the housing market channels maximum amounts of wealth from the less wealthy to the already wealthy. They started doing this when the middle class could be homeowners. After several decades of this sort of housing market, all those "middle class" homeowners from the last century are now asset capitalists worth millions. And they pretend that they didn't cause all the homelessness when they insisted on regulations to keep new people out, let only super wealthy people in, and maximize the growth of their housing assets. This is exactly how markets behave. Incumbents collude to maximize their profit, unless regulations hold them back from doing that. It's a tale as old as time, and it doesn't get any more "real" than that.
- asdff 6y agoIt is a real market, but it's a captive market.
- bsanr2 6y agoIt is not. It's essentially a planned economy.
- sokoloff 6y agoThe price of corn goes up when weather is unfavorable for corn farming (reducing near-future supply). The price of oil falls when COVID lockdowns reduce driving. Oil and corn are real markets. Real markets do not require immediate adjustment in supply to match demand.
- bsanr2 6y agoThose are externalities. They're not controlled by the suppliers.