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My opinion is that rent seeking has probably been fairly constant (relative to the size of the economy). I think the bigger issue at play is the effect of the
by pyoung 14y ago
My opinion is that rent seeking has probably been fairly constant (relative to the size of the economy). I think the bigger issue at play is the effect of the baby boomers. As they reached their peak earning potential in the late 90's and early 00's, their spending power had an impact on the broader economy, raising demand and prices across a wide range of services and goods. While the recession has had an impact, I don't think it is a coincidence that as the Baby Boomers retire, the economy feels like it is entering a long period of stagnation.
- malandrew 14y agoPossible, but anecdotally I know tons of boomers with multiple properties, but I cannot say the same for previous generations and generations that came after the boomers. This is why I suspect that novel research in the area would show that rent seeking, especially from housing has risen. Another issue that may be contributory to rising house prices are divorce rates, which skyrocketed since the early 80s. A divorce almost always results in the occupancy of two residencies per family.
- rmrm 14y ago"I don't think it is a coincidence that as the Baby Boomers retire, the economy feels like it is entering a long period of stagnation." Coupled specifically with everything else that happened over those 20 years. An ever increasing workforce, with an ever increasing productivity rate, employing an ever increasing amount of financial leverage, purchased at an ever decreasing cost. It's certainly a recipe for a peppy feeling decade or two, and a well deserved hangover later on.