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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Fiscally Conservative who wrote (51460)	1/25/2006 11:26:56 PM
From: GraceZ	Read Replies (3) \| Respond to of 110194

Well some of the other posters had me looking through wage indexes over the years in various sectors of employment and I noticed that the hospitality workers had lagged rather seriously. It is hard for something like cleaning a room to get much more efficient. If you did that for many decades you'd continually fall behind the other workers in a large city. Now big cities that are tourist districts like NYC and San Francisco have a large number of hospitality jobs and they also have the very jobs which have added the most to the economic growth in the last three decades, the high income jobs. So they have a lot of people who make high incomes as well as sub par incomes. Then to add to the pain of the sub par income maker, the hotel maids and janitors, the cities attract people who inherit money (multi-generational wealth) who want to be artist types or just look like ones. These people drive up the RE market because their purchase isn't predicated on what they can make working. They also drive up the cost of living. It is not unusual to find co-op buildings in NYC with nothing but owners who bought them with trust funds. In the old days, like back in the days of big manor estates in England and the US, it was understood that great and expensive houses were show places for multi-generational wealth, or wealth that required many generations to acquire. The same is true, to certain extent, in these two popular cities where people are continually migrating to, they display their wealth in house form.