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Interesting, why does profit seeking work for other necessities, like food (or pretty much anything really) but not in these 3 in particular (I would argue it a
by sershe 5y ago
Interesting, why does profit seeking work for other necessities, like food (or pretty much anything really) but not in these 3 in particular (I would argue it also works fine in housing, if you take a median house). And how much housing do rich people really consume?
What's special about housing, health care and education compared to say food, cosmetic surgery or tech is immense amount of govt meddling that both restricts supply and boosts demand. Everything from general regulatory burden to explicit things like zoning, certificates of need and healthcare subsidies, housing subsidies, etc. The results are predictable. Nothing whatsoever to do with profit seeking.
- voisin 5y ago>but not in these 3 in particular I think barriers to entry. In other markets profits like in these 3 industries would lead to an influx of new entrants which would put compete away excess profits. But try opening a new hospital or school - years of work and regulations to fight, and new schools have a long uphill climb to achieve reputability. Housing is constructed by bullshit restrictive zoning.