Interest rates started the year just over 3. 5% and ended the year under 3%! The long-term average rate is 7. 9%, putting into perspective the massive advantage for homebuyers which has created feverish demand for available homes. Even though new listings remained even year-over-year, low interest rates helped drive an 8% increase in closed sales in 2020. Altogether, our offshore wind and land-based renewable projects will reduce carbon emissions by almost 16 million metric tons per year, attract nearly $26 billion in direct investment and create over 17, 000 good-paying jobs.
A command economy is a system where the government determines production, investment, prices and incomes. An economy is the large set of interrelated economic production and consumption activities that determines how scarce resources are allocated. A market economy gives entrepreneurs the freedom to pursue profit by creating outputs that are more valuable than the inputs they use up, and free to fail and go out of business if they do not.
Thus, capitalist markets are also not efficient and there is some role for government intervention. The ability to decentralize using the price system requires that there be no nonconvexities, but nonconvexities are pervasive. Market economies rely upon a price system to signal market actors to adjust production and investment. Price formation relies on the interaction of supply and demand to reach or approximate an equilibrium where unit price for a particular good or service is at a point where the quantity demanded equals the quantity supplied. Economics is a branch of social science focused on the production, distribution, and consumption of goods and services.
We must stop importing the green technology and equipment from other nations, and we need to create the manufacturing capacity here in New York. To do that we must develop a steady flow of projects to start up and sustain those new businesses.
As is true in so many major issues of our time, the challenge is to close the societal and governmental gap between aspirations and accomplishment, between rhetoric and reality, between saying and doing. Offering hope of a tomorrow that never comes is one of the main causes of our social unrest and distrust in government. A new economic engine that is future-oriented, that is essential to our survival, and that has potential to benefit generations to come.
Pandemic-driven moves were spurred by folks working from home, taking early retirement, and in some cases responding to job loss. Remote working eliminated the need to have a home close to work which encouraged people to flee to the suburbs. Eliminating the commute and the desire for larger spaces with outdoor enjoyment quickly moved to the top of peoples’ wish lists. The last 8 years of positive price growth has led to formidable seller equity, enabling early retirement for some and/or the opportunity to liquidate and recover from the negative effects in some employment industries. The 2020 real estate market was a bright spot in the economy and the fourth quarter finished strong, with the median price up 10% complete year-over-year.
This will help stimulate the state’s economic recovery from the pandemic, while leading the way to the new green energy economy. Today we begin development of two massive offshore wind farms, each more than 90 turbines off the shore of Long Island. They’ll be located more than 20 miles off Jones Beach and located more than 60 miles off Montauk Point respectively. This is the largest production of renewable energy by any state in the United States history. Second, we must stop relying on other countries’ economies to fuel ours.