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A comment on Why has regional income convergence in the U.S. declined? Housing costs. Parent comment

Re:Why has regional income convergence in the U.S. declined?... by sokoloff on Wednesday July 26, 2017 @02:27PM (#14858802)
I do believe that. They can take that $X MM and put it into an investment xor into a yacht/airplane/supercars/vacations.

One is consumption; the other is investing.

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Re:Why has regional income convergence in the U.S. declined?... by mywittyname on Wednesday July 26, 2017 @05:36PM (#14860597)
Fancy-ass houses and condos are consumption. Most of these people buy up a place, then completely gut it, replacing everything with the new trendy kitchen or whatever. Even if they sold it for more than they paid, there's no way they made money on it after renovations, taxes, utilities, upkeep, and staffing.
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