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I have bad news for you: in a for-profit property market with increasing margins your money are effectively wasted, because the higher the prices, the more emp
by ivan_gammel 3y ago
I have bad news for you: in a for-profit property market with increasing margins your money are effectively wasted, because the higher the prices, the more employees in the public sector pay. To fill the vacancies government has to pay more and more, effectively redistributing your money to landlords and construction industry. Inefficiency of this spending is much higher than that of any state-owned enterprise.
- chii 3y ago> because the higher the prices, the more employees in the public sector pay i dont' quite get the rationale for this claim - are you saying that higher property prices somehow increases public sector pay? And why is public sector job vacancy have anything to do with the price of real estate?
- ivan_gammel 3y agoAccording to the recent data of Berlin government, high property prices and scarcity of affordable apartments are one of the reasons for labor shortage in public sector here. In order to fill the vacancies they need to significantly increase the salaries increasing burden for taxpayers. IMO causal link here is pretty obvious: if a teacher cannot afford living in the city, they won’t work in that city as teachers and either find a different job or leave. The same thing is happening everywhere in the world, where teacher or social salaries aren’t high enough.