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> 1. How to convince people who are doing OK to consistently spend less than they earn? Rental prices increase to capture any excess income, on average you can
by iso1631 4y ago
> 1. How to convince people who are doing OK to consistently spend less than they earn?
Rental prices increase to capture any excess income, on average you can't save money because the rental prices will increase to capture it all. One way to avoid this would be to take 10% in taxes and not allow access for X years, thus forcing everyone to save 10%, and thus allowing less money to be spent on rent.
- Applejinx 4y agoCrime increases to capture any excess resources in the absence of functioning society, too. Generally, in a functioning society, price-fixing and collusion and extortion count as crime. I would say the distinction between this and collective rent fixing (coordinated, or as an epiphenomenon of the underlying system with self-interested rational actors) is pretty moot: society either decides to dictate the limits of this behavior, or it does not. The idea that exploding rent prices are inevitable and unquestionable is… well, it's an idea. One might contest the idea of building a functioning society on that assumption. Might consider that behavior being something in the way of criminal behavior, at least on the scale of petty larceny, if not something more serious.
- iso1631 4y agoNot really, when demand outstrips supply prices will rise, econ101