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Maybe
next time around building will be more closely zoned (read: regulated). So
that housing doesn't spring up in those areas that are fire hazards. And
where after the fires, owners have to go to govt. pleading for help (often
the same people who have been on the anti tax bandwagon for
years.)
(why
do I have a feeling that we are talking past each
other.....)
(hope
your daughter and household is OK)
arthur
Arthur,
The figure at the moment is 100 homes and I
believe more than 30 dead. We are surrounded by chaparral covered hillsides that haven't
burned for 24 years. So there's a lot of fuel up their if we are unlucky. At
the moment, the fires are about 20 mi. to the east and 15 mi. to the
west.
Had you studied classical political economy, you
would know that the market price mechanism is fairly affective with regard to
the erection of houses. Trouble is
that land is not controlled by the market price mechanism. It behaves rather
like a collectible market.
The market price mechanism is a negative
feedback mechanism. The collectible market has a positive feedback mechanism.
While negative feedback continually returns to equilibrium, positive feedback
moves away from equilibrium -- hence soaring land prices.
Were housing in the free market, higher prices
would attract builders in from the moon. (It was once said that a rise in the
interest rate was bringing gold from the moon, but that was in a more
uncomplicated time.)
The free market does what is necessary while the
"economic controllers" are still choosing members of the committee that will
decide what to do (or decide that nothing can be done).
But you know that.
Harry
But
Harry the market will resolve all this.
If
500 or 5000 or 50000 homes burn to the ground the market will send the
appropriate signals to make changes as where new construction should take
place and the cost of that construction as well as land
values.
It's
those darn transition costs that are so worrying.
But
then again us free marketeers can just assume those away.
arthur
Arthur,
As you
probably know, in Southern California we have been enjoying the late summer
heat. Now the enjoyment has faded as fire is taken hold of the hillsides
from 50 mi. north of us down to San Diego -- some 150 mi. to the south. Firefighting is spread pretty thin and hundreds of
houses have already been lost.
My daughter in Poway,
about 20 mi. north of San Diego, thinks they might have to evacuate if the fire gets closer. The problem is the
Santa Ana winds -- northeastern winds that sweep over the mountains and warm
us during the winter. These are not merely pushing the fires, they are also
making aerial water drops more difficult and even dangerous.
All this to point out
that the question of supplying gadgets seems trivial.
Harry
From: [EMAIL PROTECTED]
[mailto:[EMAIL PROTECTED] On Behalf Of
[EMAIL PROTECTED]
Sent: Sunday, October 26, 2003 1:47
PM
To: [EMAIL PROTECTED]; [EMAIL PROTECTED];
[EMAIL PROTECTED]
Subject: RE: [Futurework] Walmart
and the American dream
If
our purchasing power drops, and unemployment rises to, say, 25 percent, we
will be living in a very different sort of world.
The question of supplying gadgets will seem
trivial.
arthur
Arthur,
If we don't have the purchasing power to buy it,
it will stop coming in. Then we'll supply it
ourselves.
What's the problem?
Harry
From: [EMAIL PROTECTED]
[mailto:[EMAIL PROTECTED] On Behalf Of
[EMAIL PROTECTED]
Sent: Sunday, October 26, 2003 4:46
AM
To: [EMAIL PROTECTED];
[EMAIL PROTECTED]
Subject: RE: [Futurework] Walmart
and the American dream
America's dirty little secret.
Helps to keep the US competitive. Also in agriculture in
California.
So the question is: If Americans are buying products made in
low wage conditions in China (perhaps in PLA prisons) which are then sold
in non-unionized Walmarts, cleaned by illegals earning low wages---who
(morality and ethics aside) do we think will have the purchasing
power to buy all this stuff????
arthur
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