2 ms·
In part, because it incentivizes a lack of diversification in wealth, which leads people to support policies that protect the one egg in their basket. Secondly
by bumby 4y ago
In part, because it incentivizes a lack of diversification in wealth, which leads people to support policies that protect the one egg in their basket.
Secondly, unless you own multiple properties, it's a market you can't exit. You always need a place to live so if you sell your "investment" at a market high, you have to buy your next "investment" at a market high.
Combining the two, you get a lot of policies that protect paper wealth not generating much value. I think it was Putin who said something along the lines of "I don't understand the American economy. It seems like they're just buying and selling homes to each other."
- parineum 4y ago"Investment" doesn't just mean dollars, it means value to the person making it. Owning a home provides tremendous value to the owner beyond the financial aspect.
- geocon 4y agoFailure to understand imputed rents is a huge problem whenever housing discourse comes up.
- bumby 4y agoThe OP seemed pretty clear to me that they were referring to a financial investment. I don't think "investment" is particularly useful for describing other value, and think that more aligns with "utility" rather than an "investment".