Tag: Cost of Living

Richard Epstein describes how government interventions have driven the Golden State’s housing prices to extraordinary heights.

What Is Wrong with the Bay Area?

 

4527587396_b44cd17089_zI had no idea the coastal elite cities were this bad. I’ve lived in the San Francisco Bay Area for only a short time (since June), and I’ve already decided to leave early next year for greener pastures. I grew up only a hundred miles east of here near Sacramento, yet the Bay Area is more alien to me than Amsterdam was (where I worked one summer).

I was shocked the other day to read a Brookings Institute report that claims the wages of poor working-class Bay Area residents have fallen $4,000 since 2007:

There are many ways of looking at inequality statistically; one useful way to measure it across places is by using the “95/20 ratio.” This figure represents the income at which a household earns more than 95 percent of all other households, divided by the income at which a household earns more than only 20 percent of all other households. In other words, it represents the distance between a household that just cracks the top 5 percent by income, and one that just falls into the bottom 20 percent. Over the past 35 years, members of the former group have generally experienced rising incomes, while those in the latter group have seen their incomes stagnate…