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November 4, 2019 20:57
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<h1>Jeff Kaufman</h1> | |
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<h1>Let People Move to Jobs Let People Move to Jobs </h1> | |
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<time pubdate datetime="2019-10-21">October 21st, 2019</time> | |
By <address class="author">Jeff Kaufman</address> | |
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When I argue that we should bring rents down by building more housing, one kind of response I've | |
gotten is: | |
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<blockquote> | |
Why are you trying to move more people into cities? There's lots of housing available in the US, | |
it's just not in the currently trendy cities. Instead of moving people we should be moving jobs. Why | |
couldn't Amazon have put their "second headquarters" in a deindustrializing city like Milwaukee | |
instead of splitting it between DC and NYC? | |
</blockquote> | |
<p>The idea makes sense: these cities were built out for industries that have moved on, and now they're | |
over-built for | |
current demand. They have lots of buildings available, both commercial and residential, along with a | |
lot of other | |
underutilized infrastructure.</p> | |
<p>One way to look at it, then, is why aren't companies just moving there on their own? Company rent | |
would fall, they | |
could pay their employees less for the same standard of living or effectively give them all large | |
raises by holding | |
pay constant. Everyone would waste less time in traffic. The host city would be strongly supportive | |
instead of | |
somewhere between negative and neutral. What's keeping them put?</p> | |
<p>A major factor is that current employees don't want to move. If Google announced it was moving | |
everything to | |
Pittsburgh, ~80% of the company would quit. People put down roots and get attached to areas, | |
generally more so than | |
to jobs.</p> | |
<p>New companies, however, don't have employees they would need to move. Why do tech startups choose the | |
Bay when almost | |
anywhere else would be cheaper? I see two main answers: to be close to their investors and to be | |
able to hire from a | |
deep talent pool.</p> | |
<p>And this gets us to the real problem with "let's distribute jobs across the country": industries | |
benefit enormously | |
from centralization. Being in the main city for your industry means, for a start: </p> | |
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