8 ms·

People who aren't already in the housing industry want a piece of that pie though. Supply vs demand solves the problem.

dredmorbius 5y ago
Not if constraining supply inflates asset values more than increasing it does. And in the case of land, this appears to be the case. Even if that's only an illusory belief, it's still a determinative one in constraining supply. Though that may be starting to change: "After Years of Failure, California Lawmakers Pave the Way for More Housing" To ease an affordability crisis, the Legislature voted to open suburbs to development, allowing two-units on lots long reserved for single-family homes. https://www.nytimes.com/2021/08/26/business/california-duplex-senate-bill-9.html https://www.nytimes.com/2021/08/26/business/california-duple... (https://news.ycombinator.com/item?id=28319169 https://news.ycombinator.com/item?id=28319169) I'm still skeptical the roadblock's been cleared. But the noise about fixing the problem's getting louder, at least.
- imtringued 5y ago
  This just shows that all the finger pointing of developed countries about corruption in developing nations is misguided. The only difference between them and us is that our development phase happened sooner than theirs. Our developed nation governments are often just as corrupt but the negative impact of their corruption is waning as individuals get wealthier. Those with newly found wealth then commit their own small time corruption (land is a pretty good example).
onlyrealcuzzo 5y ago
Zoning limits supply much more than demand.
France_is_bacon 5y ago
I don't think supply and demand works at all. At all. For example, universities and hospital bills have shot up way more than inflation, just huge. You'd think that would lead to more competition and lower prices, but no way. Where are this inexpensive accredited universities that charge half the price? Where are the new hospitals that charge half the price? The only thing that actually goes down are real wages. Companies will gladly pay a lot for real estate, inventory, whatever, but not the employees. Minimum wage in 1979 was $2.35, which is $8.84 in today's dollars. The minimum federal wage now is $7.25. From the 1930's to 1985, the top tax bracket was 70-90% taxes. The rich get richer. Bill Gates, Jeff Bezos, Sergy Brinn and Larry Page, Tim Cook, Larry Ellison, and the rest of the immoral patrol.
- digisign 5y ago
  Prices can't go down when the government drops football fields full of money into paying for them. Zero incentive to cut costs.
- imtringued 5y ago
  >Where are this inexpensive accredited universities that charge half the price? Community college? To be fair, the underlying problem is that everyone is competing for whole "jobs". Since it is a discrete unit you cannot be 95% as good as the best competitor, you have to be 101% as good to get the job. Assuming perfect structural unemployment, it would still make more sense to just let you and the best guy work 50% of the time rather than let the best guy work and let you stay unemployed. Of course the best guy wants moral superiority so he redefines success to be hard work and thus his ability to push you out of the labor market becomes his success. Health care is a special circumstance. The free market maximalist assumption that the free market and the law of the jungle are the same is actually wrong. The free market is created by denying the law of the jungle (by delegating all violence to the state). With health care the law of the jungle is quite strong. It's easy to extort an unhealthy patient. Whatever benefits the free market is supposed to offer is swamped by our fear of death and the ability to abuse it.
- Proziam 5y ago
  > For example, universities and hospital bills have shot up way more than inflation, just huge. It is not a coincidence that you picked two industries that thrive on the magic of regulatory capture. Student loans, which follow a person even if they go bankrupt, removed all incentives for banks to lend intelligently. In fact, they are incentivized to lend larger sums to as many people as they can. And health care is a 9,000 layered beast of corruption across local, state, and federal levels.
- powerslacker 5y ago
  > Where are this inexpensive accredited universities that charge half the price? Utah Valley University. It's less than half the price and if you're from a midwestern state they have sweetheart scholarship deals.

Not if constraining supply inflates asset values more than increasing it does. And in the case of land, this appears to be the case. Even if that's only an illusory belief, it's still a determinative one in constraining supply. Though that may be starting to change: "After Years of Failure, California Lawmakers Pave the Way for More Housing" To ease an affordability crisis, the Legislature voted to open suburbs to development, allowing two-units on lots long reserved for single-family homes. https://www.nytimes.com/2021/08/26/business/california-duplex-senate-bill-9.html https://www.nytimes.com/2021/08/26/business/california-duple... (https://news.ycombinator.com/item?id=28319169 https://news.ycombinator.com/item?id=28319169) I'm still skeptical the roadblock's been cleared. But the noise about fixing the problem's getting louder, at least.

imtringued 5y ago
This just shows that all the finger pointing of developed countries about corruption in developing nations is misguided. The only difference between them and us is that our development phase happened sooner than theirs. Our developed nation governments are often just as corrupt but the negative impact of their corruption is waning as individuals get wealthier. Those with newly found wealth then commit their own small time corruption (land is a pretty good example).

onlyrealcuzzo 5y ago

Zoning limits supply much more than demand.

France_is_bacon 5y ago

I don't think supply and demand works at all. At all. For example, universities and hospital bills have shot up way more than inflation, just huge. You'd think that would lead to more competition and lower prices, but no way. Where are this inexpensive accredited universities that charge half the price? Where are the new hospitals that charge half the price? The only thing that actually goes down are real wages. Companies will gladly pay a lot for real estate, inventory, whatever, but not the employees. Minimum wage in 1979 was $2.35, which is $8.84 in today's dollars. The minimum federal wage now is $7.25. From the 1930's to 1985, the top tax bracket was 70-90% taxes. The rich get richer. Bill Gates, Jeff Bezos, Sergy Brinn and Larry Page, Tim Cook, Larry Ellison, and the rest of the immoral patrol.

digisign 5y ago
Prices can't go down when the government drops football fields full of money into paying for them. Zero incentive to cut costs.
imtringued 5y ago
>Where are this inexpensive accredited universities that charge half the price? Community college? To be fair, the underlying problem is that everyone is competing for whole "jobs". Since it is a discrete unit you cannot be 95% as good as the best competitor, you have to be 101% as good to get the job. Assuming perfect structural unemployment, it would still make more sense to just let you and the best guy work 50% of the time rather than let the best guy work and let you stay unemployed. Of course the best guy wants moral superiority so he redefines success to be hard work and thus his ability to push you out of the labor market becomes his success. Health care is a special circumstance. The free market maximalist assumption that the free market and the law of the jungle are the same is actually wrong. The free market is created by denying the law of the jungle (by delegating all violence to the state). With health care the law of the jungle is quite strong. It's easy to extort an unhealthy patient. Whatever benefits the free market is supposed to offer is swamped by our fear of death and the ability to abuse it.
Proziam 5y ago
> For example, universities and hospital bills have shot up way more than inflation, just huge. It is not a coincidence that you picked two industries that thrive on the magic of regulatory capture. Student loans, which follow a person even if they go bankrupt, removed all incentives for banks to lend intelligently. In fact, they are incentivized to lend larger sums to as many people as they can. And health care is a 9,000 layered beast of corruption across local, state, and federal levels.
powerslacker 5y ago
> Where are this inexpensive accredited universities that charge half the price? Utah Valley University. It's less than half the price and if you're from a midwestern state they have sweetheart scholarship deals.