3 ms·

If you build your waste dump next to the school it creates negative externalities for the school. That's not the case for simply selling a piece of property to

by harryh 9y ago

If you build your waste dump next to the school it creates negative externalities for the school. That's not the case for simply selling a piece of property to a willing buyer.

roywiggins 9y ago
Buyers that don't actually live in the house and let it sit empty create a negative externality. Enough empty houses and you end up with empty neighborhoods. (This happens with domestic buyers too but the problem of huge empty investment properties seems to have come along with foreign investment?)
- harryh 9y ago
  I haven't seen any evidence that this is the case here.
ponyfleisch 9y ago
that creates negative externalities as well. they are just more subtle and people are not comfortable talking about them.
- harryh 9y ago
  What are those?
  - idle_processor 9y ago
    Lower property values and potential influx of people from a different social class. The parent post may've meant to imply race.
    - ponyfleisch 9y ago
      nope, not meant to imply race. cultural factors may play a role, of course. quality of life is better when you have more things in common with your surroundings. this is about preferences, not perceived superiority though. at the very least you'd want your kids to have a common language with their classmates though.
alexasmyths 9y ago
" That's not the case for simply selling a piece of property to a willing buyer." Not quite. A wealthy citizen of a 3rd world country has used the fact that he can pollute and treat his staff like slaves - to make tons of money. He can then go to another country wherein surpluses are spread more evenly - buy up property - and start to dominate those people economically as well. One could make the cases that 'you cannot buy homes in our country unless you're a citizen of a country with similar rules regarding externalities like the environment, human rights' etc.. Because a lot of this money is coming from countries where all sorts of externalizations are made. Same thing for manufacturing: we 'stop hiring' in locale A and go to 'locale B' where we can pollute and have slaves. You can't really look at it solely from the context of locale A. For the same reason different nations have separate currencies, I think we need to separate domicile policy.
- harryh 9y ago
  Nations have separate currencies because if they didn't some regions with experience inflationary monetary policies while others would experience deflationary ones. It would be impossible for central banks to do their jobs. You can see this in action in Europe with the Euro which was, and is, a bad idea. How does this reason translate to housing policy?
  - alexasmyths 9y ago
    " some regions with experience inflationary monetary policies while others would experience deflationary ones. " Housing - and capital inflows/outflows - are primary drivers of inflation! (FYI I know housing is generally not included in inflation targets, but it really should be because it's where inflation can effectively be hidden). Ergo - strongly related to the issue at hand. Put simpler: those who come from countries with a different currency should not be able to buy residential property. :)

by harryh 9y ago

If you build your waste dump next to the school it creates negative externalities for the school. That's not the case for simply selling a piece of property to a willing buyer.

roywiggins 9y ago

Buyers that don't actually live in the house and let it sit empty create a negative externality. Enough empty houses and you end up with empty neighborhoods. (This happens with domestic buyers too but the problem of huge empty investment properties seems to have come along with foreign investment?)

harryh 9y ago
I haven't seen any evidence that this is the case here.

ponyfleisch 9y ago

that creates negative externalities as well. they are just more subtle and people are not comfortable talking about them.

harryh 9y ago
What are those?
- idle_processor 9y ago
  Lower property values and potential influx of people from a different social class. The parent post may've meant to imply race.
  - ponyfleisch 9y ago
    nope, not meant to imply race. cultural factors may play a role, of course. quality of life is better when you have more things in common with your surroundings. this is about preferences, not perceived superiority though. at the very least you'd want your kids to have a common language with their classmates though.

alexasmyths 9y ago

" That's not the case for simply selling a piece of property to a willing buyer." Not quite. A wealthy citizen of a 3rd world country has used the fact that he can pollute and treat his staff like slaves - to make tons of money. He can then go to another country wherein surpluses are spread more evenly - buy up property - and start to dominate those people economically as well. One could make the cases that 'you cannot buy homes in our country unless you're a citizen of a country with similar rules regarding externalities like the environment, human rights' etc.. Because a lot of this money is coming from countries where all sorts of externalizations are made. Same thing for manufacturing: we 'stop hiring' in locale A and go to 'locale B' where we can pollute and have slaves. You can't really look at it solely from the context of locale A. For the same reason different nations have separate currencies, I think we need to separate domicile policy.

harryh 9y ago
Nations have separate currencies because if they didn't some regions with experience inflationary monetary policies while others would experience deflationary ones. It would be impossible for central banks to do their jobs. You can see this in action in Europe with the Euro which was, and is, a bad idea. How does this reason translate to housing policy?
- alexasmyths 9y ago
  " some regions with experience inflationary monetary policies while others would experience deflationary ones. " Housing - and capital inflows/outflows - are primary drivers of inflation! (FYI I know housing is generally not included in inflation targets, but it really should be because it's where inflation can effectively be hidden). Ergo - strongly related to the issue at hand. Put simpler: those who come from countries with a different currency should not be able to buy residential property. :)