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It artificially drives prices up. This is not a good thing for housing
by domlebo70 4y ago
It artificially drives prices up. This is not a good thing for housing
- eertami 4y agoExactly. Which makes the subsidies a funnelling of taxpayer money into the pockets of landowners - obviously this is not good, but if you have a population of majority landowners, then this is a sure-fire way to get votes.
- imtringued 4y agoIf there are 9 homes and 10 people, the 9th guy is going to bid everything he has, including government subsidies so he doesn't end up as the 10th guy who gets nothing. Those subsidies only work if there are 10 houses and 9 people because then you can choose whatever house you want and sellers must compete with lower and lower prices.