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#11 | ||
Member
Join Date: Oct 2010
Posts: 7,105
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Quote:
However, that does not mean there aren't consequences for these people. 1. Many of those in these riot areas will have lots of consequences. Banks may realize that this is a bad area when comparing mortgages that pay out versus those that go belly up and may stop loaning money. The neighborhood pays. 2. House prices drop, insurance prices go up. As a result many will default on their mortgage which in turn causes the neighborhood to drop in value (lots of boarded up houses). The neighborhood pays. 3. Insurance for business goes up. Some of these businesses will fail, some will close, and some will raise their prices. Again, the neighborhood pays. 4. The school system is funded by property tax. If property values drop the tax revenue also drops. If people move out, the tax revenue drops. This is called "white flight". The neighborhood pays. The problem is if you have people in society which have nothing to lose. Everyone should want a society where every member has a vested interest in the society going forward.
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