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If we talk about Finland, there's definitely an aspect of raising prices due to transfers. It is particularly apparent in the price of housing in Helsinki regio
by ptaipale 10y ago
If we talk about Finland, there's definitely an aspect of raising prices due to transfers. It is particularly apparent in the price of housing in Helsinki region. Anyone living or moving here who does not have enough income is guaranteed a certain amount of money monthly, plus "reasonable housing expenses" (plus some medical expenses and such if needed). For a family of two parents and two small children, living cost 1419.77 €, plus rent on top of that, with a ceiling rent (known as "reasonable housing expenses") of about 1000 €.
This means that for owner of a flat, there is no point in letting out an apartment of any size or condition below the ceiling rent.
So it's not so much that we have a profound distrust of the free market; it's that the market is not so free.
For Finland, one problem of handing out checks is that we can't print money, so much of the commonly presented monetary and economic theories won't work at all.