Writing at the New York Times, economist Rebecca Patterson confidently asserted that “Housing is the foundation of the economy. Homes represent the single largest asset for most Americans. They are a vital source of wealth creation that supports consumer spending, which in turn represents about two-thirds of U.S. economic output.” No, that’s just not true.
To understand why, readers need only stop and ask (or read Bringing Adam Smith Into the American Home) what part of the U.S. is known for housing as its source of economic vitality. Would it be Silicon Valley, or Hollywood, or Manhattan, or Houston? The answer is no each time, and that’s true despite the greater truth that the houses and apartments in Atherton, Beverly Hills, Upper East Side, and River Oaks are often rather impressive and expensive.
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