As far as I can tell, the problem isn't so much a lack of jobs or a lack of homes but rather that they aren't in the same place. In small town America, the problem isn't a lack of housing stock, it's that it is hard to afford it with few good paying jobs. In big city America, the problem isn't lack of jobs, it's that it is hard to find a job which pays enough for you to afford the limited housing stock.
I think this is a large reason behind the polarization in America today. We aren't all facing the same aspect of this imbalance.
I was hoping that the work-from-home movement was going to help with this, but RTO seems to be in full swing. So, I think our best bet would be to stop incentivizing the concentration of job creation. Absent a fix, we will have to wait a few decades for the imbalance to even out.
It's a little unfair to blame startups, they largely just set up shop where the capital is. Most VCs required startups to be headquartered near by for easier management/communication. The tech scene in SV had such exceptionalism that it quite literally viewed any startup not in SV as an inevitable failure. Even YC mandated startups be in SV.
Most of the real estate "in the mountains" here in Colorado is basically SF prices, with a whole extra set of challenges. Even the front range I think has even worse home price to median income than a lot of the other places people think about when bitching about housing affordability.
I had also hoped WFH would solve that problem. For sure it alleviated it for the time it lasted - at least some people moved to more affordable locations. Unfortunately, for some reason many CEOs decided to take a step back.
> In big city America, the problem isn't lack of jobs, it's that it is hard to find a job which pays enough for you to afford the limited housing stock.
Maybe the more fundamental problem is that in big city America, it's easy for existing homeowners to band together to forbid any further housing stock from being built.
See Silicon Valley: amazing concentration of high-paying jobs, laughably low population density.
We're heading further into a reality where there just aren't enough jobs. All the money has been hoovered into the stock market. There's just not enough floating around to pay people, it's all going into LLM electricity or graphics cards.
We should be living in a time of ease, where the whole planet is sustained with all of us only working a few hours a week. Instead most people are fighting for scraps barely able to afford rent.
It won't continue like this forever. The line doesn't always go up.
Wouldn't it be nice if individuals decided at the start of their career how much money was "enough" for them, and made a pledge to retire once they hit that number. Then society can give them an "I won!" hat or gold card or something, and the next guy can take the role. In this way all enterprises become an engine pulling new hires off the street, and emitting independently wealthy people to go and enjoy their lives.
But instead we have a tiny minority of people who control more and more capital. This has well-known and terrible consequences for society from almost every angle. What I don't understand is why the .1% don't want to step aside and let someone else have a turn. It's funny that our bodies have stomachs, so we know when we've eaten "enough". But money doesn't get stored in the body.
The drive to become that wealthy and powerful does not turn off. It’s a similar failure mode as a meth addict stripping a substation for copper. Neither persona can help themselves.
> It's funny that our bodies have stomachs, so we know when we've eaten "enough".
Humorously on topic, GLP-1s patch the reward center in your brain and say “enough is enough.” If only there was a similar protocol for wealth and power.
I think there's a strong case for having maximum wealth above which you'll just get a 100% tax.
All the billionaires are equal parts clearly miserable people, and also terrifying and psychopathic. I assume they didn't start out that way, but there's also probably a personality that just has a need to run up the score.
I think if capitalism had a kill screen, that you get to and then you have to go do something else for a while, both the billionaires and the rest of us would all be happier and healthier.
Money only goes to the company to get reinvested when the company sells shares, so at IPO time, when an insider sells, when more shares are issued, etc...
Otherwise, it's one asset holder selling to another asset holder, usually at ever increasing prices. So yes, a lot of money is simply sitting in the stock market.
Now, some does come back in the form of share buybacks and dividends. That being said, the average dividend yield is significantly less than the long-run average (it's less than 2 percent right now, long term average is above 3%).
Question really comes to what does the seller do with that money? Buy some other stock? Buy some other asset. What fraction they actually spend to buy goods and services?
EDIT: I wrote this in a rush intending to refer to general market entry. In a broad sense, what I ended up writing is incorrect. To preserve the accuracy of the comment history I will not remove my mistake.
>All the money has been hoovered into the stock market.
I think you might misunderstand what the stock market is. Or perhaps you misunderstand what what stocks are? When you purchase stock, it doesn't get locked in a vault, with your name written next to it, and the number of shares it got you on that day. That money goes to the company, and they use that to finance their operations (and ideally, further growth). That financing may go directly to salaries, or even if it goes to services, those services are paid to someone who pays salaries.
If your claim is instead that "all" of that money, or some meaningful majority of that money, is going to electricity and AI silicon, I would invite you to do some basic math on the companies involved.
When you purchase stock, your money goes to the seller of that stock. That's what makes a "market". The stock market isn't a bunch of companies selling their stock to the public.
I think this is a large reason behind the polarization in America today. We aren't all facing the same aspect of this imbalance.
I was hoping that the work-from-home movement was going to help with this, but RTO seems to be in full swing. So, I think our best bet would be to stop incentivizing the concentration of job creation. Absent a fix, we will have to wait a few decades for the imbalance to even out.