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Why developers seem to only build luxury housing (2018)

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Re: Why developers seem to only build luxury housing (2018)

#181
post #151

Earlier quoted context omitted.

The solution isn't to put a band-aid on it. But to get out of the way as much as possible. If you prohibit most profit you prohibit most progress.

Pretty sure Upton Sinclair debunked that theory over 100 years ago

Pretty sure he didn’t ‘debunk’ economics.

Re: Why developers seem to only build luxury housing (2018)

#182

Earlier quoted context omitted.

The solution isn't to put a band-aid on it. But to get out of the way as much as possible. If you prohibit most profit you prohibit most progress.

Profit should not be a thing in housing, healthcare, or food until everyone is housed, cared for, and fed.

A nice platitude. What are you doing to achieve it? My guess is nothing, because you have bills to pay, like everyone else.

The reality is that if all those things were provided population would grow unchecked until resources ran out. It’s not sustainable.

On the other extreme, we can do a lot better than artificial scarcity.

Re: Why developers seem to only build luxury housing (2018)

#183

Earlier quoted context omitted.

In the book The Affordable City [0], this is illustrated with a really powerful analogy: Every year in the United States, the Toyota motor company sells about 2 million regular Toyota cars and 300,000 expensive luxury Lexus cars. Suppose that we introduced a law that each motor company can only sell 300,000 cars a year. Which cars would Toyota continue to make? [0] https://islandpress.org/books/affordable-city [1] ht…

Simple: Toyota would stop being a motor company. It would instead start 10 new motor companies, and a parts manufacturing supplier system for those motor companies, and keep controlling interest in those new companies. More deeply, I don't understand how it's analogous. Why are companies prohibited from selling more than 300K cars? Is it because of too-high pollution (CO2 emissions, tire micro particles, etc.)? Is it…

You're choosing to interpret the analogy outside of the bounds implied by the argument it is supposed to relate to.

In which case the rebuttal to your argument is as simple as adding another arbitrary layer of assumptions that do not generalise, in order to restrict your use of arbitrary assumptions that do not generalise, e.g "the government will not allow that split, back to discussing the original scenario."

Re: Why developers seem to only build luxury housing (2018)

#184

Earlier quoted context omitted.

In the book The Affordable City [0], this is illustrated with a really powerful analogy: Every year in the United States, the Toyota motor company sells about 2 million regular Toyota cars and 300,000 expensive luxury Lexus cars. Suppose that we introduced a law that each motor company can only sell 300,000 cars a year. Which cars would Toyota continue to make? [0] https://islandpress.org/books/affordable-city [1] ht…

Precisely why the law should really say that making X affordable cars per year buys you right to sell 1 luxury car. You actually want it more complicated than that, maybe something like for every dollar of affordability you sell (under $X), you earn the right to sell $0.10 worth of luxury.

This line of reasoning is why systems collapse. You are proposing adding further regulation on top of a mountain of existing regulation without considering the problem is probably bottlenecks caused by existing regulation.

Re: Why developers seem to only build luxury housing (2018)

#185
post #154

Earlier quoted context omitted.

Why should someone go through all the effort to do that if they aren’t getting paid for it?

The workers get a livable wage. The organization breaks even.

a livable wage is a really bad metric because the definition of living is extremely subjective. We had it right initially with market derived wages. This talk of living wages is keeping us from real discussions about market power abuse/monopsony/oligopsony situations in the labor market that would improve labor market efficiency a lot more than arguing over what a living wage is.
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