5 ms·

"Externality" means something more than "thing I don't like."

• tptacek 12y ago
  That's a bit of a snarky way to put it, but this is correct; the parent comment is abusing the term "externality". The consequences of rental contracts for tenants in a free housing market are not an externality; the tenant is a party to the transaction.
  • harryh 12y ago
    The funny thing is that he has a Masters in Economics. You'd think he knows what the word means.
  • foobarqux 12y ago
    Housing prices and displacing people from their homes has an obvious effect on the local labor market, which is an externality.
    • Kalium 12y ago
      Given that they are displaced by other people, presumably with higher incomes and skill levels, I'm not sure how obvious an effect that is.
      • foobarqux 12y ago
        A city's inhabitants aren't fungible even in SF and in any case replacing employees costs a company a lot of money.
  • chongli 12y ago
    No, but there are serious externalities involved when classes of people are driven out of communities.
    • davidw 12y ago
      They perhaps they should consider building more housing. With the bonkers prices there, I bet even with a portion dedicated to low income housing, stuff would still get built, as long as the rules were clear.
      • Kalium 12y ago
        In theory, yes. In practice, local activists tend to demand new buildings be 100% affordable, and the result is generally gridlock where nothing at all gets built.
  • deleted 12y ago
    [deleted]
  • glesica 12y ago
    In this case, the tenant isn't a party to the transaction, the tenant can't afford to be a party to the transaction at $8,000+ per month, that's my whole point.