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The distinction is dumb. People's main thing they have to pay on a regular basis is rent or mortgage, so the cost of housing should be included in the consumer
by 8note 4y ago
The distinction is dumb. People's main thing they have to pay on a regular basis is rent or mortgage, so the cost of housing should be included in the consumer inflation index.
A 10000x increase in rent makes carrots unaffordable even if the price of carrots hasn't changed
- dragonwriter 4y ago> The distinction is dumb. You would be better positioned to make that argument if you could demonstrate a basic understanding of what the distinction is. > People’s main thing they have to pay on a regular basis is rent or mortgage, so the cost of housing should be included in the consumer inflation index. The cost of housing as a consumer good (rent, actual or, for homeowners, imputed) is included in inflation measures (consumer price index, PCE, etc.) The asset price of residential real estate is not, but that’s a different thing.
- lillecarl 4y agoWe've got the same bullshit in Sweden with the housing market boom, free-ish loans have driven prices through the roof. This means we're stuck on low interest rates or everyone and their uncle will default, a better solution must exist! This makes it very difficult to get into the market since our rules require 15% of your loan in up-front capital. For a 1 room apartment that means about one year of salary saved up. Yay boomer economy...!
- afpx 4y agoNot sure why you were downvoted https://www.bls.gov/cpi/factsheets/owners-equivalent-rent-and-rent.htm https://www.bls.gov/cpi/factsheets/owners-equivalent-rent-an...