We looked at Joe Weisenthal’s interesting tweet and discussed the issue of deciding on interstate travel.
This is a classic chicks and egg problem – which one comes first?
I consider this question as an example of a misconstruction – to an individual what is not the case with the group. Weisenthal thinks it is correct that when a particular person moves, it is motivated by the availability of work. But that’s not the whole story. Jobs have also moved to a certain state, most of which are running on the Sun Belt. And that transition is driven at least in part by availability ready for work to escape from high housing costs such as California.
And housing isn’t the only factor. Illinois has also lost its residents, and the state’s Iveite housing costs are reasonable. In states like Texas, taxes and regulations are also more business-friendly.
When businesses are successful in finding businesses, availability of skilled jobs is a key consideration. Businesses thought they could pay lower wages in Texas due to lower taxes and housing costs. In that case, the company can decide to find a new headquarters in Lone Star State, even before one new employee is hired. From an individual worker’s perspective, they believe their movements are motivated by the availability of work. However, employers are available when needed, as employers know there is a significant influx of workers into states like Texas, which are motivated by low housing costs and taxes.
At the total level, it makes more sense in that you move into a large pool of the world that is willing to work on a reasonable salary with regard to employers following workers. But on an individual level, it is that he is a CAS, as workers chase after the employer and move to where the work is.
Like the economics case, it is a phenomenon of balance. For example, shoppers want to visit nearby areas with half a dozen car dealers so they can combine different models. Auto dealers like to find dealers next to other dealers. Because we know there are a lot of new car shoppers in these areas.
Do dealers draw shoppers? Or are you showing the dealer? In Balance, the answer is “both.”
