It's amazing to me how much expense comes out of fear.<p>For example, one of the reasons why Manhattan real estate is so expensive is that people feel a need to live here in order to keep up their professional status. Not to limit their commutes, but because the really evil law and financial firms stop promoting you as soon as you move off the island. So they spend $5 million on a house, as opposed to, for example, not working for douchebags.<p>Where this is worst in New York is in the private school industry. $40,000 per year is market now, and it starts in nursery school. On no data whatsoever, parents now spend half a million out of fear that if their kids go to public schools, they won't be able to get into the top colleges and get good jobs. New Yorkers, take note that people in the rest of the country think you're a giant douchebag if you spend $40,000 on a nursery school.<p>The Bush years were awful for political reasons-- curtailment of civil liberties, illegal wars, disastrous morale-- but, economically, this past decade would actually be a fairly good time for the U.S. if the Satanic Trinity-- healthcare, housing, and tuition-- of costs were better controlled.