Earlier quoted context omitted.
I think its a lot more complex than that. If the cost of beef was increased 4x for whatever reason, then most people would just switch their preference for meat. There are ofcourse a lot of greedy companies. But a lot of the time the consumer demands a price point for software product, many startups cannot afford to pay 400K to developers. I think its not a reflection of how difficult it might be to create software b…
The system of usury against land ensures that land costs adapt to absorb all available income after food/clothing/energy costs have been accounted for. Why is silicon valley more expensive to rent in? Because people came with money and the banks agreed to loan at a multiple of the new wage ceiling. If wages increase x4 guess what will happen? We need to stop banks creating debt to issue against land otherwise it will…
Bay area is infamous for many housing supply constraints in regulations. As far as loans increasing the demand side, banks can be pretty strict with %20 down payment restrictions. Which is why once houses go out of the dual income high earner price range ($1-1.5 million), you start seeing it overflow to other less desirable regions in the bay area.