3 ms·
Nonsense. There are properties that have doubled in price over the last 2-3 years for no significant reason other than the flooding of cheap money into the econ
by cudgy 3y ago
Nonsense. There are properties that have doubled in price over the last 2-3 years for no significant reason other than the flooding of cheap money into the economy. Landlords did nothing special or productive to earn this huge share of people’s income. They require little labor or outlay relative to other business markets. Furthermore, housing is a necessity like water and food; such resources cannot be allowed to rise in cost disproportionately or a unstable society is guaranteed where the populous will simply seize the properties during a civil war.
- rmbyrro 3y agoProperty owners have no control over prices. It's all dictated by supply/demand. Yes, government printing money inflates overall prices. More recently, this happened because governments needed to pay for covid. During inflationary cycles, money flocks to assets like real estate. Simply because they are good protection against inflation. Property owners don't become richer because of that, since everything else became expensive as well. There are economic systems where price-setting is controlled and/or centralized. To my knowledge, all of them failed in producing better outcomes than a free market for anyone in society.