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Thursday, April 30, 2009

How can price increase?

One is to increase demand, the other is to decrease supply. Granted, there are other gimmicks that can be played at the micro and macro level, but generally speaking things become more dear when there are less of them and less dear when there are more of them.

How to help the "recovery" of the California housing market? I have jokingly said at lunch that we should create a WPA that would go about tearing down abandoned residential and commercial property. It would be the ultimate "broken windows" program. The government could claim to create wealth by destroying wealth while at the same time being able to claim that more people are gainfully employed. It would be exactly the type of thing one would expect at the bottom of the rabbit hole we have descended.

But, at lunch I am just joking.

Unfortunately, in Victorville, CA, they aren't joking.

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