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> Net money supply hasn’t changed But where it lands has. House prices and Ferraris might be cheaper. Milk and rents will be more expensive.
by tomp 7y ago
> Net money supply hasn’t changed
But where it lands has. House prices and Ferraris might be cheaper. Milk and rents will be more expensive.
- mrfusion 7y agoI don’t buy that it’s a necessary consequence. Even In your example if demand for houses goes down and demand for milk goes up, what prevents more land being used for dairy farming, more builders becoming farmers?
- lern_too_spel 7y agoPoor people already have to live somewhere. It just paid for with rental subsidies and low income housing now, both of which also drive up rents for others. Similarly, the US government already buys up milk to create a price floor, giving the milk away to the poor and to school lunch providers.
- tonyedgecombe 7y agoHousing would be a problem where supply is constrained, I can't see it being a big issue in the US.