Former Senator Tunney is known as a bright person but he has certainly reached the wrong conclusions regarding the effects of overbuilding in office construction. What are the effects of building an excess of office capacity?
- Stimulus to the economy due to expenditures on wages and materials.
- A substantial addition to the tax rolls.
- More competition in office rentals, thus lowering costs to end users.
- Demolition and reconstruction of older, obsolete buildings is hastened.
On the other hand, who is hurt? We know that the buildings eventually will be rented out, perhaps by new owners.
It is only the investors playing by the rules of the capitalist system who may be harmed. And that is the way the system is supposed to work.
ERNEST A. SCHROER JR.