What's wrong with that?
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How is it harming people? What's wrong with the world having some places with more expensive and less dense housing than other places?
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Yes, people go wherever it makes sense relative to their wages. The impact is on the wage payers.
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I agree that most of the world's suffering is the direct result of bad government policy. Sorry we couldn't discuss the topic without it devolving in to personal attacks. Have a nice day.