Bifurcation as Seen in Silicon Beach Prosperity and Eviction Boom

Xing, Victor (2018): Bifurcation as Seen in Silicon Beach Prosperity and Eviction Boom.

Abstract

Policy-induced boom in non-bank funding enabled prosperity in the technology sector and large corporate issuers. At the same time, income growth remained stagnant in low-to-middle-skill jobs and peripheral areas amid persistent job polarization, and combination of asset price appreciation and soft wage growth led to rising evictions in lower income households. Bifurcated economic growth appear benign to monetary authorities as areas of growth dominate aggregate data, but tighter funding conditions would risk cooling the “growth engine” amid declining tolerance for downside shocks. Furthermore, rising wealth inequality and popular discontent have demonstrated their ability to reshape the political landscape.

• Item Type: MPRA Paper
• Language: English
• Keywords: Uneven growth, inequality, monetary policy, distributional effects, policy distortion
• Subjects: D - Microeconomics > D1 - Household Behavior and Family Economics; D - Microeconomics > D4 - Market Structure, Pricing, and Design; E - Macroeconomics and Monetary Economics > E0 - General; E - Macroeconomics and Monetary Economics > E4 - Money and Interest Rates; E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit; R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R3 - Real Estate Markets, Spatial Production Analysis, and Firm Location

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