Earlier quoted context omitted.
I have thought something similar as well. If you have one Bill Gates and everyone else making $80k, then Bill Gates has a pretty low upper limit on consumption of scarce assets, and thus goods and services are not bid up. But when a larger and larger number of people make more than their peers, then you start to have a bidding war for scarce goods (ex: housing, education, etc). Hats what you have in the Bay Area. Mor…
Industries that have government heavily involved in (health care, education, housing) have seen huge runups in prices. Ones government is not involved in (such as software) have seen precipitous price declines.
Meanwhile, government is the only meaningful access many have to healthcare and education.