Monday, September 15, 2008

Real Life Economics Lesson

Liz said that I couldn't talk about this anymore, but that's what a blog is for right? So anyone who has taken Econ 101 remembers drawing those stupid supply and demand curves and then the professor would talk about some hypothetical situation where price controls were introduced and the market wouldn't clear because supply and demand weren't in equilibrium. Well I am happy to report that theoretical economics has hit reality here in Zurich. See the graph below that you hopefully remember drawing:







For all of you who slept through Economics or had some fluff major where you didn't have to take a business class (yes I know there are about 5 teachers reading this.....). I will get you up to speed on what happens. First, there aren't enough apartments - no one wants to build anymore because you can find better ways to make money with the land/capital. Second, everyone who wants an apartment (i.e. every person in Zurich, including the 20+ people we saw at each of our three apartments we viewed tonight) has to line up and pray to the gods that they get lucky enough to be blessed with the honor of a below market rent. Then, when you finally get into a rent-controlled place you never move because you have a great gig going, therefore perpetuating the problem for new renters.



It has moved beyond theoretical for us...... I think I miss capitalism the most.

5 comments:

Karla said...

Ok - so it totally sucks that you're having apartment finding issues. However, seeing your diagram, Joe, with the lovely, yet informative explanation, was the first time I've seen said diagram. Guess those silly 'fluff' biology classes were for the birds...

Hang in there! Something will come along soon!

MK said...

I'm in the MF'ING Omicron Delta Epsilon Economic Honor Society! I heart Econ! And, for the record, I did take Econ-190 with Liz, John Worth, Mike Crane, and Kathryn Wohlschlaeger. It was a big Chicago fan club up in that piece.

I cannot believe you really uploaded a graph, and then put in a text box. Wow Joe, you've stooped to a new high of academic nerdiness.

I agree with Karla, something's gotta give. Maybe it's an appropriate time to invest in housing for expatriate renters in Zurich. You let me know, I'll put up the capital. I've got loads of Swiss Francs under my mattress.

Miss you guys like the Packers miss Favre!

Daddyo said...

Hey I'm sure that the patron saint of apartment hunting will bless you soon with an apartment...or maybe some one has a guest room that you could live in...
Also, I'm sure that you there are some people that pity you being from the States and all and will want to keep you from living on the streets in your oh so not fashionable clothes...keep the faith!
Mags

Daddyo said...

I am impressed....Joe may I use " THE GRAPH" for an upcoming power point? Please let me know asap as I am nervous about pragarism. I wish I could spell....oh Hell!
So only 3 English stations must have prompted your desire to complete the 2hr Blog project.....WOW....
Nick

Kate Caplinger said...

I am impressed, though not at all surprised, with the graph inclusion on the blog. I love it!

I would like to point out that, even as an education major, I did take econ, and I do not appreciate the implication that my studies involved fluff of any sort.

Miss you guys!