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by ethanbond
2145 days ago
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Yes, in the economic sense of productivity, it is. Your high income = high rent is the same statement as what I’m saying. The mechanisms are the same, though. Amazon putting HQ2 in a city causes rent to go up (higher productivity). A coal mine developing a new, more efficient train to move coal around will also cause rent to go up (higher productivity). |
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2. That's a really naive sense of economic productivity. Here is a thought experiment.
A) Let's shut down all of Amazon HQ1.
B) Let's shut down the dams that provide 86% of Seattle greater area's electricity.
Which one of these entities is ACTUALLY responsible for that "productivity" then? And I bet you rents in Seattle without electricity would drop far greater proportionally than they do out by the dams. Rent follows incomes, not productivity.