Ronald Reagan hired a brilliant economist for his cabinet name Paul Zane Pilzer. I was fortunate enough to read his books and hear him speak in person in the early 1990s. One belief he has always stuck with me. “Resource times Technology equals Wealth” or “RxT=W”.
As I pondered how this has become important in real estate I did some research. There is actually someone that went and looked at the generations of humans on this planet. By their calculations, they estimate the total human population on Earth from the very beginning until now is about 100,000,000,000 people. That is 100 billion. Currently, there are 7.75 billion people on Earth. Meaning, that of all the people that ever lived on this planet, 1 in 13 are alive this very day.
So, we have the resource: land. Now comes the technology. How do we utilize the land to accommodate all these people? How do we balance between how much cement and asphalt versus how much dirt and trees? Maybe we start building more buildings where entire floors exist underground. Maybe entire buildings exist underground. Did you know that the more homes you build, the higher the average temperature for that city becomes? After all, stucco and cement hold onto heat longer than grass, trees or dirt do. If the area cools down to a lower temperature at night, the average temperature during the day will be lower as well.
I don’t have the answers. I just have the questions.
1 out of every 13. Imagine that.