3 ms·
Link for the curious: https://en.wikipedia.org/wiki/Baumol_effect https://en.wikipedia.org/wiki/Baumol_effect Baumol plus zoning and NIMBY driven real estate
by api 4mo ago
Link for the curious:
https://en.wikipedia.org/wiki/Baumol_effect https://en.wikipedia.org/wiki/Baumol_effect
Baumol plus zoning and NIMBY driven real estate hyperinflation basically explain the modern economic malaise among especially the young.
I’ve also heard this called “in-deflation.” Inflation in everything you need, deflation in everything you make.
- ajmurmann 4mo agoThank you for linking what I was too lazy to link. To add, politics usually responds to Baumol by subsidizing demand and/or more regulation. Needles to say both make it worse. Article: https://www.niskanencenter.org/cost-disease-socialism-how-subsidizing-costs-while-restricting-supply-drives-americas-fiscal-imbalance/ https://www.niskanencenter.org/cost-disease-socialism-how-su...
- littlexsparkee 4mo agoso many projects got nerfed by NIMBYs during good economic times and now are infeasible. there's more political will for change now but i'm still skeptical things will change much given the cost of construction in major metros.
- ajmurmann 4mo agoDeporting or deterring much of the construction workforce certainly doesn't help either