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by codeismightier 3724 days ago
Can you explain a bit more about how these people can raise their standard of living by moving?

Money is just an abstraction for real goods and services produced by the economy. Presumably we need people to live in Philly since that's where our industry is. If people moved away to some remote place, wouldn't our economy take a hit? Not to mention the transportation costs of servicing a more remote, less dense area.

2 comments

If Philly is where our industry is, then we only need as many people to live in Philly as the labor market demands. However, if unemployment is high or wages are too low (relative to the cost of living) in an area, then that suggests we have an oversupply of labor there, not a shortage. Basic goods (food, clothing, materials for housing) are grown/produced in many areas (even rural ones), not just in dense cities, so no, transportation costs don't really increase the cost of living in rural areas. To the contrary, in most cases it's far, far cheaper to live outside of dense cities.
Youre talking about a shotrage of labor.

The creates upward pressure on wages, as businesses need to attract more workers.

Dont see how this is a bad thing, given that wages have been stagnant for decades