Olivia Hwang

How did the change in the cost of living in Silicon Valley, California in the past decade affect the economic growth of the area?

Started Aug. 17, 2022

Abstract or project description

The cost of living in Silicon Valley, California, has risen steadily over the past decade, seemingly while enrollment in public schools and birth rates in the area have been dropping. While analyzing how the change in the cost of living in Silicon Valley affects the economic growth of the area, a few assumptions must be asserted: The inverse relationship between the cost of living and birth rates, and the correlation between birth rates and enrollment in public school, and the direct relationship between birth rates and school enrollment with the economic growth of an area. While causation does not equal correlation, there are multiple pathways through which the increasing cost of living could impact economic growth, two of which will be analyzed in the following paper: 1. The rising cost of living causes more residents to have to move out and fewer residents wanting to move in, and consequently declining birth rates and school enrollment. This causes smaller school budgets and more school closures, then consequently the property value of the area decreases, and diminishes the attraction to live in the area. 2. The rising cost of living still causes residents to have to move out and fewer residents to want to move in, and the decline in school enrollment and consequent school budgets and closers cause the quality of schooling and education to go down. In the long run, this would cause more of the population to be less educated, negatively impacting the aggregate income, and consequently economic growth.