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Untrue: if dividends rise quicker than wages, you can have house prices rise faster than wages. And in fact earnings from capital now surpass earnings from wor
by orwin 5y ago
Untrue: if dividends rise quicker than wages, you can have house prices rise faster than wages.
And in fact earnings from capital now surpass earnings from work in the world (or is it in the west?). So I suspect house prices will continue to rise faster than wages, until enough people got fed up.
- mytailorisrich 5y agoThis has no relation with dividends, which are also capped but not by wages.
- orwin 5y agoSo house prices are driven by income, right? Not wages, income. So as the income from capital grow faster than the income from work, you will have more and more houses owned by capitalists (in the sense of capital-owner) and less by workers. In most modern countries, large part of the workers are also capitalists and this works OK-ish, but in countries with the same governance as the western world one hundred years ago (Brazil, Mexico, but also probably soon India and some ME countries), this create a severe imbalance.
- chii 5y ago> earnings from capital now surpass earnings from work they are not comparable things. Capital can be deployed on massive scale, but for work, a human only has at most 24hrs to work (if they don't sleep).