My question is, what is the problem, really Take a look at Matt Yglesias's The Rent Is Too Damn High ( http://www.amazon.com/dp/B0078XGJXO); many "fun" municipalities like Seattle have restricted development to the point that housing is extremely expensive. If you move from Seattle to, say, Houston or Dallas, you'll probably see your effective rent shrink by 35 – 50%. Secondly: see Tyler Cowen's books The Great Stagn…
Something I'd like to understand better is why capital (and not labor) is capturing a higher share of firms' overall income than in past years. As I noted in my reply, the decline of savings means this is a double-whammy for people, as they get hit on the front end with lower upfront cash payments, and on the back as well, when they don't share in any upside of corporate profits, due to no share ownership.