[yummyfajitas]

Land and labor may cost more, but not linearly with average income. A road worker or teacher's salary doesn't double just because a bunch of miscrosofties doubled the average income.

Manhattan has incomes about 3x the national average. By your logic, the salary for fast food workers in Manhattan should be about $30/hour, a burrito costing $3 outside the city should cost $9 and a macbook should cost $3000.

The indirect costs you list are simply the costs of having new people. They indicate that total spending should increase when population does, not per-capita spending. Rich people may require slightly more roads, but they also never use welfare, medicaid, visit the ER under a phony name, and they rarely commit crimes.

[timr]

So now your argument has gone from "the cost does not increase" to "the cost does not double"? I think you've conceded my essential point -- costs go up when a bunch of rich Microsofties move to town. Now you're just arguing to argue.

And no, it isn't just a matter of per-capita spending: when rich people move into an area, costs go up more rapidly than when poor people move into an area. It's the reason you see cheaper rents in the Mission than you do in Pac Heights.