3 ms·
Those are decoupled markets. Employers pay more in SF, so landlords can extract more. The problem is that landlords in both markets are colluding to extract mor
by digitaltrees 3y ago
Those are decoupled markets. Employers pay more in SF, so landlords can extract more. The problem is that landlords in both markets are colluding to extract more than pure market forces would otherwise support. Now if employers then have to raise wages further, that distortion could result in higher inflation.
Capitalism doesn’t work when monopolies and cartels gain sufficient power to eliminate the price setting function of competition.
- WalterBright 3y agoCartels don't work without coercion of its members. Remember the no-poaching cartel among tech companies in Silicon Valley? and the companies were cheating on their cartel agreement? and the infamous email Steve Jobs sent complaining about the cheating? A landlord has no power.