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Suppose house prices fall by twenty percent. People will be furious that their can’t lose investment is losing. People in this case being an outright majority o
by bradleyjg 5y ago
Suppose house prices fall by twenty percent. People will be furious that their can’t lose investment is losing. People in this case being an outright majority of all adult citizens and disproportionately likely to be voters. Politicians will do everything in their power to reverse the trend and keep the good times going. Someday they may find it impossible, but I find it hard to believe we are close to that.
- webmaven 5y agoThat 'outright majority' though is being eroded as more people are priced out of the market. If the percentage of renters continues to grow (and property ownership keeps concentrating), you could see that math get flipped on its head (though there is an intermediate stage where 'likely to donate' outweighs 'likely to vote' to keep things as they are). There are other possible policy scenarios, though. Sane densification of suburbia for example seems more likely than massive rural infra buildout.