Lawmakers not having the moral courage to stand up to NIMBYs are part of the problem, along with people not voting for them. Cutting people off at the knees to make the grass taller is not a solution.
I can't agree with this. At various times over the last 30 years, there has been roughly two classes of people in SF: "tech workers", and "everyone else." The "everyone else" comprises teachers, restaurant workers, retail workers, delivery drivers, and others, who cater to the whims of "tech workers." "Everyone else" works in industries subject to competition, market forces, and the ruthless demand for profitability (try keeping a restaurant open for 3 losing quarters). "Tech workers" work in an industry often shielded from these exigencies, cossetted in a pillowy cocoon of VC money. "Everyone else" serves the local community. "Tech workers", if they serve anybody, tend to be disconnected from the local economy and serve national or global markets. Relatedly, "tech workers" are paid high salaries that rise quickly. "Everyone else" is paid much more modest salaries that tend to stagnate. To add insult to injury, not only did this set of circumstances arrive in SF, it also arrived quickly, in waves, representing a series of shocks. Then came the last and possibly the most serious shock: remote work. Altogether, this is a recipe for: spiraling costs, social fragmentation, homelessness, and political turbulence.
Put another way, an ocean of money was poured into a thimble and no amount of "increasing supply" is going to make a difference. Make it two thimbles, ten thimbles, a hundred thimbles, it's still going to leave a mess.
Every time I read this sort of stuff, I ask - do you think that the demand to live in San Francisco is infinite? For a city that’s less than one-half as densely populated as Brooklyn, NY, no less? This problem was solved 150 years ago.
Even if demand was so large as to be practically infinite, all it would mean is that San Francisco becomes the local Manhattan equivalent on the West Coast. Which in turn means big-government California progressives gets a whole lot of additional tax revenue to play with, at zero extra cost to the rest of the economy. How is that supposed to be a bad thing, exactly?
>do you think that the demand to live in San Francisco is infinite?
In practical terms, because of the inevitable feedback loop, yes. Building more housing creates more demand for housing.
If SF built more houses, then rent would drop and thus more businesses/jobs could be profitable at the same standard of living. The more jobs there are, the more demand for housing there is. And if people move into those new houses then the city has a larger userbase for any locally-focused businesses.
This whole loop is why cities keep growing.
In other words, meeting the demand for housing creates more demand for housing.
Of course it is. You claim that it’s impossible for San Francisco to satiate demand. That implies that it’s functionally infinite seeing as it’s currently less dense than Brooklyn or the north side of Chicago - dense places but not quite Manhattan or Manila.
> Put another way, an ocean of money was poured into a thimble and no amount of "increasing supply" is going to make a difference.
So? The problem is not "too much money", it's too little housing. Having lots of highly-paid folks around is good for local workers' incomes; housing scarcity is really bad for them. Homelessness happens when people can't afford to pay for a home.
> Having lots of highly-paid folks around is good for local workers' incomes
You're describing income inequality. Personally, I don't believe income inequality is good for everybody. I think it tends to benefit some people at the expense of others.
It's also a kind of "income inequality" that those who are "disadvantaged" most from it can avoid very easily, by voting with their feet. But you don't see very many people moving from the highest-income cities in the U.S. to places like Appalachia, or for that matter to the poorest places in Mexico. People tend to do the exact opposite, funnily enough.
And if you were speaking faithfully you know there are mechanisms by coincidence or design that make it harder for the disadvantaged to vote. It's no coincidence that your rep is probably only available every other Tuesday at 1pm while the disadvantaged are working at one of their two jobs.
> But you don't see very many people moving from the highest-income cities in the U.S. to places like Appalachia
> At various times over the last 30 years, there has been roughly two classes of people in SF: "tech workers", and "everyone else."
You can always arbitrarily divide people into two groups by making one "everybody else", but the two groups you name are not coherent classes. (Not even the first, which overlaps both [a relatively well paid segment of] the working class and the petite bourgeoisie, but especially not the second, which spans from the lowest of the working class to the highest end of the rentier/capitalist class.)
> the two groups you name are not coherent classes
Sure, they are. "tech workers" tend to work in tech companies. "everyone else" tend not to work in tech companies. It's quite coherent. Are there exceptions? Of course. Does the presence of exceptions mean the classes are incoherent? Of course not.
Why are you curious? I didn't say there were only two classes. I said there's been "roughly" two classes over the last 30 years. Add other classes if you want (billionaire tech owners who don't code, billionaires in non-tech fields like real estate or agriculture or petroleum, old-money San Franciscans, millionaire non-working property owners who don't know how to open a Google Doc), it doesn't affect the conclusions: "tech workers" (and the "tech owners" who pay them) are an important factor causing many of the problems in SF.
The problem with rich people is not that they are rich, it's the side effects of them being rich which cause other people to be poorer. I have no problem with Elon owning 10 megayachts if he wants to. Unless he's buying so much steel to build his megayachts that no one else can get steel things. Then it's a problem. And only then.
Even then, the problem could be Elon buying so much steel, or it could be steel manufacturers deliberately limiting steel production and only selling it to Elon to keep prices high. The latter is what is happening with landlords and building restrictions.
Except that the "side effects" of being rich aren't "side effects", they're the essential effects. Being richer than other people by definition means you can outcompete those other people for goods and services. That's the whole purpose.
Elon owning 10 megayachts means 10 megayachts (as much as $5 billion) worth of productive capacity being redirected away from other uses that benefit many people, to a use that is frivolous insofar as it largely benefits just one person.
Elon got rich by creating goods and services for other people - such as EV cars, or low-cost space launches. It's a wash. Oh wait, actually it isn't because every trade of goods and services is advantageous to both parties by definition.
(There are of course some who only got rich by transferring wealth away from others - but they're not the ones people mostly complain about wrt. 'the rich'.)
I met a nursing student in Shanghai who ended up marrying a "driver". (For reference, the way you get into nursing school in China is by flunking the college entrance exam.)
Attending Fudan University, I also met several students there and at the school across the street, Shanghai University of Finance and Economics. Both are highly prestigious.
Everyone's graduated by now, and the most materially successful of all the contacts I made, by far, is the nurse. She already owns a Tesla and an apartment in Shanghai. (She also has a child, which is true of only one of the university students.) What's her secret?
The couple's parents bought those things for them.
What's her secret? She works in healthcare, which is very expensive in the United States and especially in the Bay Area, and tends to pay nurses very very well (especially in the Bay Area). This illustrates my point. Her high salary as a nurse comes at the cost of many people around her, in many ways: we all pay higher healthcare costs, in part because of the high pay for doctors and nurses (as well as to hospital administrators, insurance companies, drug companies, etc.), and she's yet another highly-paid professional with the ability to outcompete other people for things like housing. Is she working class? I'm not convinced that she is.
The median price for a Tesla Model 3 in 2024 was ~$47k. The median price for a 4-door compact sedan in 2024 was ~$26k, or almost half as much. I'm sure some working-class people can afford a Tesla. None of these are hard and fast rules, and there are exceptions. But, which do you think is going to be more affordable to a typical working class person? The $47k car or the $26k car?
zozbot234, why do you say that Elon got rich by creating goods and services for other people? What I mean is, what do you expect your readers to infer from this, or what do you hope us to conclude from it?