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Kind of related to the financial aspects of this article: why is the housing market treated as the basis/most important part of the US economy and not, specific
by Mockapapella 4y ago
Kind of related to the financial aspects of this article: why is the housing market treated as the basis/most important part of the US economy and not, specifically, energy or finance? The article talks about financial institutions' ability to hinder or even halt growth altogether, and we saw similar actions being taken in Canada last year with the truckers. With regards to energy, I've heard that the cheaper energy is to produce in a nation, the wealthier it tends to be.
- bombcar 4y agoAt least in the US it's because of deliberate policy decisions after WWII around home ownership. Massive government agencies are explicitly tasked with getting the percentage of Americans owning homes as high as possible. Energy and finance are important, but don't directly involve individuals as much, and people are VERY emotionally tied into their home and it's value. If all houses suddenly lost 50% overnight, and mortgages were slashed simultaneously to compensate, it wouldn't be that big of a deal but everyone would freak the hell out. It's much easier to inflate the currency than it is to allow home prices to drop.