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Perhaps the economy should be structured in a way that allows people to do that without being forced into debt.
by TheOtherHobbes 4y ago
Perhaps the economy should be structured in a way that allows people to do that without being forced into debt.
- tristor 4y agoPerhaps it should... but it isn't. It's perfectly reasonable to believe that it should be this way, but it's irrational to behave as if it /is/ this way, when it isn't. The reality is that, at least in the US, it is a requirement for nearly everyone to have a mortgage to purchase a house and even for those who can afford to purchase without a mortgage it makes more sense to get one anyway since mortgage interest is usually lower than the rate of returns for other investments you would be keeping the cash in, and you get tax benefits both by not realizing gains to liquidate investments to buy a house and the interest for the mortgage is tax deductible via the mortgage interest credit program. Acting as if anyone is realistically out here buying houses in cash other than corporate investors / REITs, is silly. Even people on significant tech salaries are both better served and much more probably to have a mortgage even in LCOL areas.
- scarface74 4y agoSo how would you “structure the economy” to allow someone to buy a house without debt and that allows them to both save for a house and pay for some place to live while you are saving?
- thrwyoilarticle 4y agoI work for an employer who pays me in arrears. They are indebted to me. They could pay me up-front, but then I'd be indebted to them. Maybe there can be a system where dollar bills slowly peel out in front of me as I do my daily work? Debt exists for a reason. It's more useful than cash.