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I think the reason why people don't live in Silicon Valley is that it's even more expensive to live there. I'm also kind of skeptical toward the protestors, mo
by omegaham 13y ago
I think the reason why people don't live in Silicon Valley is that it's even more expensive to live there.
I'm also kind of skeptical toward the protestors, mostly because it's confusing to me that people actually expect living in the city to be cheap. Big cities have lots of people and very little space. Therefore, space is in high demand and is really expensive. If you don't want to live in a shoebox, don't live in the city.
California is even more expensive because it's in even higher demand. It has a burgeoning culture scene, a large tech scene, and is a desirable retirement spot. All of these things are pretty much beyond the protestors' control.
Not only that, let's look at their endgame. There are two ways for rent to be lowered:
1. Subsidized housing.
2. Make fewer people want to live in San Francisco.
The first will work in the short term, but it will also drive up taxes in the area. Businesses will then raise their prices. The rich guys will be unaffected - what do they care if eggs now cost $3.00 instead of $2.00? The poor guys will, again, be unable to make ends meet. But at least their housing is affordable!
The second makes me think of cities where no one wants to live like Flint and Camden. I'm sure there's very cheap real estate there, but I wouldn't want my city to turn into it.
- carbocation 13y ago3. Allow for the construction of many more housing units. This allows supply to help satisfy the demand, and is preferable to #1 or #2 by miles. The main objection, it seems, is that people fear that the character of the city will change (at least, so I hear--but is that true?).
- omegaham 13y agoOh, it will definitely change, and I think that a lot of people will view the changes as negative. It means that more lower-class people will live there. I think that these same people who are conducting protests toward Google would throw a fit if it was suggested. They want affordable housing and the exclusivity that comes with living in an affluent city. They don't want to live in Oakland; they want to live in San Francisco.
- wwweston 13y agoPrice-rising effects of a subsidy depend on how you do it. Ideally what you'd want is something quasi-Georgist -- you tax rentier profits progressively up to a limit.