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everyone always says this as if housing and the economy are two separate things. you cannot have a strong economy while housing has crashed. housing is at the
by cylinder 6y ago
everyone always says this as if housing and the economy are two separate things.
you cannot have a strong economy while housing has crashed.
housing is at the top of the needs hierarchy. when people have money they will put as much as they can into housing. so if the govt gives everyone $10,000, probably 30-50% of that will flow to housing. that doesn't mean that their intention or only goal is to "support the housing market."
- smooth_remmy 6y agoYou can absolutely have a strong economy when housing has crashed. Housing crashed = cheaper housing = more labor mobility = labor can spend more money on their "higher level needs" like eating at restaurants or elective medical care or online shopping. Would you say "you cannot have a strong economy while the food prices have crashed"? Obviously not, lowered food prices would be seen as a good thing by everyone.
- blaser-waffle 6y ago> Obviously not, lowered food prices would be seen as a good thing by everyone. Until the companies providing the food go out of business. Or get bought out by foreign firms with no incentive to provide good food or service, e.g. Tim Hortons (owned by burger king, which is in turn owned by a Brazilian firm).