Hoppin' mad!
I was Googling some ideas for creative incentives during this crazy time in real estate and I stumbled upon an article in the San Francisco Chronicle, written just this past February, that made me very angry.
The article was actually about "stimulus" money incentives that were or were not distributed to the real estate sector. An economy "expert" was interviewed and here is the segment that bothered me:
Let's say Mr. Thornberg sells candy bars. Let's pretend it costs him 5 cents to make and wrap the candy bar but that there has developed a sudden demand for candy bars because Barney Frank says that folks who haven't been able to afford $2 candy bars in the past deserve to be candy bar eaters.
Let's also say that in places like Atlanta, people can't get enough of the candy bars and that folks who previously could afford the $2 candy bars are now demanding $5 candy bars because they are in a bidding war with other folks and the price has skyrocketed. Is that Mr. Thornberg's fault? Should Mr. Thornberg start making candy bars faster and faster and more sloppily and at the original $2 price just because some sociallist thinks that's the right thing to do?
I say that if the public is willing to pay, there is nothing wrong with making a profit. It is not the builders', entrepreurs', or widget-makers' fault that the public was willing to pay more for real estate in 2005 and that the bubble burst.
Shame on you, Mr. Thornberg, for implying that builders had some kind of control of the current recession that they don't deserve help. My husband is an honest, hard-working, builder and has been in business for more than 20 years and it is mentality like yours that make people think that he was price gouging the public.
If you only knew. My husband can name you at least a half dozen "customers" who have taken advantage of the kindness of him and his dad over the years. Don't tell me they don't deserve help.
Edited to read: This is a great quote from Atlas Shrugged-
"Do I wish to sell my product for less than my customers are willing to pay me? I do not. Do I wish to sell it at a loss or give it away? I do not. If this is evil, do what you please about me, according to whatever standards you hold. These are mine. I am earning my own living, as every honest man must. I refuse to accept as guilt the fact that I am able to do it and do it well. I refuse to accept as guilt the fact that I am able to do it better than most people - the fact that my work is of greater value than the work of my neighbors and that more men are willing to pay me. I refuse to apologize for my ability - I refuse to apologize for my success - I refuse to apologize for my money."
The article was actually about "stimulus" money incentives that were or were not distributed to the real estate sector. An economy "expert" was interviewed and here is the segment that bothered me:
Chris Thornberg, economist with Los Angeles research firm Beacon Economics, said the stimulus package is necessary to help revive the economy, but that the home building industry doesn't require or deserve any special consideration.
"The housing industry broke first, but it was only a symptom of the underlying problem in the U.S. economy ... a 12-year spending binge based on overinflated values of our homes," he said.
I am not an economist myself but I am SHOCKED that an "economist" would not acknowledge the concept of supply and demand. If supply is low and demand is high, it's not the builders who set the price, it's not the car dealers who set the price, it's not the flat-screen TV makers who set the price. The market sets the price.Let's say Mr. Thornberg sells candy bars. Let's pretend it costs him 5 cents to make and wrap the candy bar but that there has developed a sudden demand for candy bars because Barney Frank says that folks who haven't been able to afford $2 candy bars in the past deserve to be candy bar eaters.
Let's also say that in places like Atlanta, people can't get enough of the candy bars and that folks who previously could afford the $2 candy bars are now demanding $5 candy bars because they are in a bidding war with other folks and the price has skyrocketed. Is that Mr. Thornberg's fault? Should Mr. Thornberg start making candy bars faster and faster and more sloppily and at the original $2 price just because some sociallist thinks that's the right thing to do?
I say that if the public is willing to pay, there is nothing wrong with making a profit. It is not the builders', entrepreurs', or widget-makers' fault that the public was willing to pay more for real estate in 2005 and that the bubble burst.
Shame on you, Mr. Thornberg, for implying that builders had some kind of control of the current recession that they don't deserve help. My husband is an honest, hard-working, builder and has been in business for more than 20 years and it is mentality like yours that make people think that he was price gouging the public.
If you only knew. My husband can name you at least a half dozen "customers" who have taken advantage of the kindness of him and his dad over the years. Don't tell me they don't deserve help.
Edited to read: This is a great quote from Atlas Shrugged-
"Do I wish to sell my product for less than my customers are willing to pay me? I do not. Do I wish to sell it at a loss or give it away? I do not. If this is evil, do what you please about me, according to whatever standards you hold. These are mine. I am earning my own living, as every honest man must. I refuse to accept as guilt the fact that I am able to do it and do it well. I refuse to accept as guilt the fact that I am able to do it better than most people - the fact that my work is of greater value than the work of my neighbors and that more men are willing to pay me. I refuse to apologize for my ability - I refuse to apologize for my success - I refuse to apologize for my money."
posted by Lisa Duke at
8:05 AM
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