Gresham’s Law Trips Up Treasured San Francisco Stores Due to Skyrocketing Land Prices

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You may believe that worldwide luxury brands such as Louis Vuitton, Gucci, and Hermes are like the GOOD money that would be driven out by the BAD money according to Gresham’s Law. But in this case these luxury brands are the bad guys. Like their always-empty stores in airports, these future ones in San Francisco’s tony Union Square are just very expensive billboards. And the independent retailers are the good guys (like Arthur Beren Shoes and Britex Fabrics). But even if it weren’t for the purchasing power of the most-valued of these luxury brands, the current craziness of Bay Area land prices would likely have raised the retailers’ rents beyond affordability, so they would have had to relocate or downsize or both. And even the luxury brands have no control over the mess being created by the new subway.

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