There seems to be a pretty sharp lower bound on how cheap a living situation (e.g. rent on an apartment) can be in the parts of the United States I'm familiar with. I would have thought that there would be demand for cheap-but-bad housing on the part of people with low income. Here are some hypotheses I've come up with for explaining this, and I'd appreciate anyone who has relevant knowledge commenting if I'm on track:
- There is in fact very little such demand in the US because people who can afford any kind of rent at all have grown accustomed to a certain standard of living.
- The cost of complying with health and safety regulations makes it too expensive to price rent below a certain amount even at the worst the rental situation is legally allowed to be.
- The people who would try to rent as cheaply as possible are also the people who are least likely to pay their rent (e.g. due to job insecurity), and landlords don't want to take on the additional risk.
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The lesson I derived from Amy Chua's first Tiger Mom book (to the extent that we can get any real information from the public image) was that if you frog-march your children through all the "right" school and extracurricular activities, they'll end up with the confidence and opportunity to seize all of life's many possibilities -- not depressed, neurotic, hating their parents, or whatever else is thought to afflict such children,
As her daughters reached adolescence, they rebelled a little -- by dropping some extracurriculars and adopting others, for example. Not through crime and drugs, and not by dropping out of high school to carve out their own way of life . They went to Harvard and now the world is open to them, and as far as we can tell they also have a rich social life.
Is this the right lesson to draw? I hope not.
Amy Chua's kids have two Yale law school professors for parents. Genetically and in terms of social capital they rolled a natural 20. I suggest reading Judith Rich Harris's "The Nurture Assumption" and/or Bryan Caplan's "Selfish Reasons to Have More Kids" if Chua is getting to you.