3 ms·
So 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 mor
by orwin 5y ago
So 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.