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Adam Smith observed in his "wealth of the nations" that when people get more money they almost always spend it on better housing. There is a limit to how large
by bluGill 10mo ago
Adam Smith observed in his "wealth of the nations" that when people get more money they almost always spend it on better housing. There is a limit to how large a house people will want before they decide not to (many rich are living in mansions smaller than they could afford - and in some cases the size of their mansion seems to be set because they want to be the biggest not because they want/use the space), but I don't know where that limit is.
- zeroonetwothree 10mo agoI guess I’m unusual because my house is far cheaper than I could afford. It’s quite modest compared to the surrounding area.
- HPsquared 10mo ago"The rent of land, therefore, considered as the price paid for the use of the land, is naturally a monopoly price. It is not at all proportioned to what the landlord may have laid out upon the improvement of the land, or to what he can afford to take; but to what the farmer can afford to give." — Adam Smith, An Inquiry into the Nature and Causes of the Wealth of Nations, Book I, Chapter XI "Of the Rent of Land"