Therefore, the new money balances are repatriated after initial circulation to the high income sector. New money balances circulate only once. There is no second round effect. The injection is not self-sustaining. Therefore, the experiment must be repeated to maintain the same standard of living.
Sellers are generally in a unique monopoly position.
This immobility means that sellers can raise prices rather than output and landlords can raise rents rather than supply new housing. Normally, rising prices would induce new sellers into the area. However, in many of these depressed areas, risks and costs are high, thus discouraging the entry of new competition. Many of these areas have high crime rates that raise both insurance premiums and the hurdle rate of return required for new production. Most of these areas lack a labor force with qualified skills.