Prefabs imported from China?
by
fsilber
08/08/2007, 11:15 AM #
The potential of prefabricated housing is in outsourcing. What will be the price per square foot when they are made in in China, Africa or South America -- or any other place where monetary exchange rates or the availability of slave labor allows us to buy skilled labor at $1 per hour?
Though the American poor may benefit from cheap houses (at the expense of American construction workers), it won't help the middle class much. The main cost of middle-class housing is not in the structure but rather in the land/location -- and it is the very high price of the location that makes a location desirable.
To be desireable, a location must be safe and must have good schools. To be safe and have good schools, a neighborhood must exclude disadvantaged families whose children often have educational and social problems -- children who are at greatest risk of falling into gangs and street crime. To exclude such families a neighborhood must be priced beyond their reach; it must be priced even beyond the reach of disadvantaged families with Section 8 housing subsidies.
Until small communities are allowed greater control over the sort of people who are permitted to live there (e.g. by expelling single mothers whose children act out), middle class families will have little option but to continue sacrificing child-rearing so that so that both parents can dedicate themselves to lucrative but demanding careers, raising their 1.5 children in expensive, gated communities.
Unfortunately, this response will weaken our country's economic base in the long run, leaving future generations with a much smaller middle-class tax base. The effect will be as if the entire nation suffered from "white flight."