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>>You are simply rehashing the idea that free market is holy and magic. Instead, housing is inelastic. Housing is not inelastic at all. Economists have studied
by CryptoPunk 6y ago
>>You are simply rehashing the idea that free market is holy and magic. Instead, housing is inelastic.
Housing is not inelastic at all. Economists have studied the effects of laws reducing land-use rights, and have found they impose massive social costs, in the form of less housing construction, that leads to less affordable housing.
https://www.aeaweb.org/articles?id=10.1257/mac.20170388 https://www.aeaweb.org/articles?id=10.1257/mac.20170388
- goodpoint 6y ago> less housing construction, that leads to less affordable housing You mean that decreasing housing supply correlates with increasing price? Because that's exactly what inelastic demand is: https://www.investopedia.com/terms/e/inelastic.asp https://www.investopedia.com/terms/e/inelastic.asp
- CryptoPunk 6y agoDemand might be inelastic, but supply and price are not.