Other rich people are there, which is good for networking.
I think a good portion of your argument hinges on whether this kind of networking is overall positive-sum for the economy or whether it’s zero-sum or negative-sum.
My argument only relies on rich people having reasons of some sort for living in expensive areas that aren’t economically justified from a global perspective. But I would say that social networking between rich people is a net negative on the margin because it crowds out more objectively considered deals, and leads to more collusion and trading of eg board seats.
I think a good portion of your argument hinges on whether this kind of networking is overall positive-sum for the economy or whether it’s zero-sum or negative-sum.
Do you agree that this is a major crux?
My argument only relies on rich people having reasons of some sort for living in expensive areas that aren’t economically justified from a global perspective. But I would say that social networking between rich people is a net negative on the margin because it crowds out more objectively considered deals, and leads to more collusion and trading of eg board seats.