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This is the price of success. New York City is the most famous city in the world. Manhattan is the adult version of Disneyland. It's basic economics: the thing in most demand will cost more. Shouldn't those of us in the 1% receive privileges for being hard-working, intelligent, and talented? I am of the opinion that the strong should inherit the Earth. Letting the meek have access to the splendor of all New York City has to offer seems perverse, IMO. I look forward to the perpetuation of gentrification in Brooklyn and Queens, which is inevitable. Don't like it? Go to The Bronx or Staten Island.
It has everything to do with the unemployment rate in Europe. Take France for example. It is so hard to fire workers (because laws are designed to protect jobs and middle class lives) that companies are reluctant to invest and create jobs. So the remaining 20% rely on government benefits while the rest of the employed are slow to adapt to a global economy. You can't separate the unemployment rate from these governments efforts to preserve the wealth gap.
In China and India - you are also cherry picking a few aspects of their economic structure. Sure there are jobs and people have disposable income to spend on consummables. But if you work in a bank in those countries you will see for yourself that the #1 cause of "middle class" people slipping back into poverty are (1) people getting sick and having no health coverage and (2) people entering retirement with insufficient savings. Something that can make an average person poor in due time is not insignificant. Many agencies have already reported on this phenomenon.
It's as simple as this - as long as you have a few people making so many times more than the majority, those few people are going to start pushing up the prices of goods, services and assets, causing inflation to the point that the ones who make less can less afford to buy the same things. It's happening in Europe, China, India and the US.
At the end of the day, the whole have-have not dynamic is a global phenomenon. It just happens faster in the US.
It's not that simple.
A lot of capital in the US is made through rent seeking behavior.
Almost a trillion USD a year is wasted in health care. Countless more billions in medicaid and welfare programs. Even more countless billions in states and the feds subsidizing private enterprises' low wage workers. Then you have the farm subsidies. And then the "education" subsidies. Even further down the line you have the $700bn/year defense sector which is nothing more than another federal agency.
Where do you think this money goes? Do the poor save? Even the poor who scam the state and feds don't save. The money eventually trickles up to major corporations through the spending habits of the poor and the middle class.
The major corps love all this waste in the US. It's easy money. Why compete for a $1 when you can extract it from/through the state?
Europe definitely has it's own problems but the amount of rent seeking behavior by major corporations and utter waste doesn't compare to the US. Even in relative terms.
Last edited by wawaweewa; 09-12-2012 at 09:09 PM..
Thing is that everyone who enjoys this "professional-managerial" standard of living WORKS in Manhattan, COMMUTES to and from Manhattan and spends all his entertainment money IN Manhattan.
Basing costs the way this "Council" does says basically that THE RICH IN BROOKLYN PAY A LOT. That's quite meaningless in evaluating an entire borough.
I wouldn't be so sure. Brooklyn is not some place to sleep, there is plenty of very good food and entertainment here.
A lot of capital in the US is made through rent seeking behavior.
Almost a trillion USD a year is wasted in health care. Countless more billions in medicaid and welfare programs. Even more countless billions in states and the feds subsidizing private enterprises' low wage workers. Then you have the farm subsidies. And then the "education" subsidies. Even further down the line you have the $700bn/year defense sector which is nothing more than another federal agency.
Where do you think this money goes? Do the poor save? Even the poor who scam the state and feds don't save. The money eventually trickles up to major corporations through the spending habits of the poor and the middle class.
The major corps love all this waste in the US. It's easy money. Why compete for a $1 when you can extract it from/through the state?
Europe definitely has it's own problems but the amount of rent seeking behavior by major corporations and utter waste doesn't compare to the US. Even in relative terms.
We are trying to explain the reason why Brooklyn or any location has become too expensive for middle and low income people, not how people become too poor or too rich. As I said, the explanation is simple. You have a minority who makes many times more than the majority, however which way they do it. The minority will buy whatever they want at the prices they want to pay and drive up prices overall, leaving the majority priced out.
We are trying to explain the reason why Brooklyn or any location has become too expensive for middle and low income people, not how people become too poor or too rich. As I said, the explanation is simple. You have a minority who makes many times more than the majority, however which way they do it. The minority will buy whatever they want at the prices they want to pay and drive up prices overall, leaving the majority priced out.
It's a poor explanation as the concept of minority/majority is vary fluid. Poor majority in Manhattan could be rich minority in Alabama
Something is wrong regardless. 2BR condos for 400-500K on Kings Highway, in Gravesend/Bensonhurst etc still does not make sense to me.
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