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It's not just health care, the house market is the _same_ way. Houses are built and sold to people who occupy them and then sell them to younger generations for
by foxhop 7y ago
It's not just health care, the house market is the _same_ way. Houses are built and sold to people who occupy them and then sell them to younger generations for more and more money. The assumption is that you will always find a person below you to sell to. This strategy has worked for a long time.
- buboard 7y agoYes exactly, and the fact that the boomer generation has a lot of votes has led to gridlock internationally: they promote regulations that keep the prices artificially skyrocketed or prevent house auctions from happening as is happening in many european countries.
- Dumblydorr 7y agoNot to mention they have these huge 4500 sqft McMansions built and are then shocked millenials arent interested I'm them, relative to the modest and older and more affordable houses nearby.
- mrep 7y agoIf by more and more money you mean due to inflation, then yes. Otherwise, no, pretty much all returns to real estate are in the form of rent and thus if you are using it yourself, you aren't going to get a lot more back for on average after adjusting for inflation [0, 1]. [0 The rate of return on everything, 1870-2015]: https://economics.harvard.edu/files/economics/files/ms28533.pdf https://economics.harvard.edu/files/economics/files/ms28533.... [1 HN discussion of it]: https://news.ycombinator.com/item?id=19817584 https://news.ycombinator.com/item?id=19817584