As labor becomes free (along with information), our most productive skilled laborers and capital owners are rendered freer to perform their craft. Let’s take a look at Beyonce.
Given our willingness to allow in an unlimited number of illegal aliens she can now hire a bevy of dirt cheap personal assistants to take care of her baby, clean all her residences and chauffeur her around at a far lower price than in the old days. She can employ skill-less university graduate interns to tweet, post on Facebook, handle Instagram and produce an unlimited number of photo-shopped pictures for distribution. She can hire an army of free security guards and hair stylists. All her computers, phones, children’s toys and clothes are made overseas so to her, they’re almost all free.
All this gives her more time to perform which is where the real money is in music. Her productivity has exploded. The interns who do her tweeting might be able to afford a ticket if they save for a month. The key to her success is that she sells a lot of small stuff to many underpaid fans (like her security guards) since they could never afford anything expensive. Free labor has allowed her expenses to sink to zero while increasing her free time to generate more and more revenue. The same can be said of any corporate titan, CEO or foreign plutocrat.
At the end of the week she wonders what she can do with all that cash. There are only so many clothes she can wear, cars to drive, or food to eat, little of it gets sprinkled out into the general economy. And then she gets an idea – buy great gobs of luxury real estate. In so doing she drives up the price of land and diverts builders away from producing low or middle income housing. All those interns and security guards will have to commute for two hours to get to her.
The bid she puts in for that Manhattan skyscraper condo will have to be high enough to compete with freaked out Russian and Chinese oligarchs who need a place just in case their world collapses. Ever wonder why so many apartment/condo buildings in Manhattan (or LA, London, Miami, or Toronto) are dark at 8:00 pm on Wednesday night? It’s because Beyonce can only be in one place at a time. The next time you get a tour of NYC and see all the new condos going up at huge prices, consider – the population of Manhattan has risen by a measly 7% over the last 25 years! There are NOT more people chasing less real estate. There is actually far more real estate per person. The new mayor (a liberal Democrat) is freaking out and has no idea how any of this happened.
Beyonce could explain it all to him.