Comment by UweSchmidt | Hacker News Reader

Comment by UweSchmidt | Hacker News Reader

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One of the symptoms of communism as experienced in Eastern Germany and other countries was the scarcity of many things. People formed long queues when rare goods (e.g. bananas) happened to be available and spent a lot of effort to procure necessary items (parts and materials to repair a vehicle or fix their appartment).

Occasionally we find this kind of queue-forming scarcity in western market based economies, even though the laws of supply and demand handle most situations quite well. To me this is not just an irrationality, it's a bit of a disgrace. With all of the shortcommings of capitalism, at least it ensures that a good substitute product is always available.

Be it a job market with affordable housing, a mobile phone or a movie, or a restaurant with friendly service and fair prices: Whenever I spent a few moments to look around, I never fail to find an excellent choice of suitable products and services.

On the other hand, outside of communism, a horde of irrational customers who insist on having a certain scarce thing cannot possibly be satisfied. Prices go up and/or the provided value goes down.

I wish for everyone to recognize the workings of the laws of supply and demand, and a happy life in any of the great tech/startup cities of the world.

The scarcity problem is well understood in the Bay Area: government works hard to disallow new housing. Cities here zoning for lots of jobs, but they do not allow residences for those who work at those jobs.

The irrationality is simply bad planning by local governments. They are extremely strict in what they allow, and they do it in a way that maximizes profits for current residents, at the expense of anybody who comes along later (through birth or migration). This is pure regulatory capture.

As others have noted, this is because of governments telling developers they can't build, not a lack of developers wanting to build.

And there are other substitute products. You only need one great job at a time, and there are plenty of other markets in the US where one can make a living that under any other circumstances would get everyone telling you to count your blessings and stop whining so much about how you're only upper middle class. There's startup hubs, industry hubs, places that may not be anything in particular but still have plenty of jobs of various types, things closer to nature, places with decent weather (even if SV is the epitome of weather for some people), all sorts of other choices.

Really, if you don't want to "work for a startup" (including starting one), and even then, a rather particular sort of startup, you don't need to be in Silicon Valley. It's an option, yes, and I'm neither surprised some people choose it nor particularly criticizing them. But it's not the only option.

I get the point you are trying to make, but it doesn't make sense in this case. For all it's problems, East Germany solved the housing problem [1], in fact, its probably one of the main contributors to Berlin's ability to grow while keeping housing prices "reasonable"[2]. Our current property system isn't really that great at handling rapid fluctuations in housing demand, as we are witnessing in real time in the Bay Area. If we don't find more efficient housing solutions, we essentially condemn all but the privileged class to impossible commutes, poor quality housing and homelessness.

[1] https://en.wikipedia.org/wiki/Plattenbau [2] https://www.citylab.com/design/2018/09/a-second-life-for-ber...

This is not the result of market dynamics, its the result of state intervention.

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