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Created November 4, 2019 20:57
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<h1>Jeff Kaufman</h1>
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<h1>Let People Move to Jobs Let People Move to Jobs </h1>
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<time pubdate datetime="2019-10-21">October 21st, 2019</time>
By <address class="author">Jeff Kaufman</address>
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<p>
When I argue that we should bring rents down by building more housing, one kind of response I've
gotten is:
</p>
<blockquote>
Why are you trying to move more people into cities? There's lots of housing available in the US,
it's just not in the currently trendy cities. Instead of moving people we should be moving jobs. Why
couldn't Amazon have put their "second headquarters" in a deindustrializing city like Milwaukee
instead of splitting it between DC and NYC?
</blockquote>
<p>The idea makes sense: these cities were built out for industries that have moved on, and now they're
over-built for
current demand. They have lots of buildings available, both commercial and residential, along with a
lot of other
underutilized infrastructure.</p>
<p>One way to look at it, then, is why aren't companies just moving there on their own? Company rent
would fall, they
could pay their employees less for the same standard of living or effectively give them all large
raises by holding
pay constant. Everyone would waste less time in traffic. The host city would be strongly supportive
instead of
somewhere between negative and neutral. What's keeping them put?</p>
<p>A major factor is that current employees don't want to move. If Google announced it was moving
everything to
Pittsburgh, ~80% of the company would quit. People put down roots and get attached to areas,
generally more so than
to jobs.</p>
<p>New companies, however, don't have employees they would need to move. Why do tech startups choose the
Bay when almost
anywhere else would be cheaper? I see two main answers: to be close to their investors and to be
able to hire from a
deep talent pool.</p>
<p>And this gets us to the real problem with "let's distribute jobs across the country": industries
benefit enormously
from centralization. Being in the main city for your industry means, for a start: </p>
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