Elizabeth Barrette (ysabetwordsmith) wrote,
Elizabeth Barrette
ysabetwordsmith

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Housing and Economics

This article sets up a pretty simple equation:

Low housing availability 
High housing demand
Static or falling wages
-----------------------------
Reduced economic growth

In other words, if people can't afford to live near work, and can't afford to drive there, the work won't get done.  People are moving to other places where it is cheaper to live and/or there are better jobs.

I have personally seen this tank an outlet mall near us.  Years ago, it was built in a town that didn't have enough workers to staff that many shops.  For minimum wage, it is not cost-effective for anyone to drive in from anywhere else.  They used to have all kinds of things -- a bookstore, a music store, a toy store, kitchen stores, etc.  Now it's pretty much down to clothing stores and Harry & David's.  That's very sad.  But it was also predictable from the moment they announced plans to build an outlet mall where they did.

I find it frustrating that I, with my bad grasp of math, fairly often do a better job of spotted economic realities than people whose job this is supposed to be.
Tags: economics, news
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