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I don't see why it's the government's job (at state/federal levels) to fix a local problem like this.

If anything, I think if the state government is going to do anything, it should help service workers relocate to more affordable places and find good work there. Let the Bay Area real estate market collapse.

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It's a chicken/egg problem. The jobs are in the cities. The population density in other areas makes it even harder. People move to the cities for jobs because there aren't any where they are from.f

Incorrect. Yes, the jobs are in the cities, but there are many other cities besides the Bay Area. In most other cities, lower-paid people (e.g. service workers) are able to find places to live. What we're talking about here is a problem mostly unique to the Bay Area.

I'm simply advocating that all the service workers relocate to other cities. I live in the DC area; there's tons of restaurants and other businesses here where service people work, and while housing is relatively expensive, we don't seem to have the problems with it for lower-paid people that the Bay Area has.

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