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Then given a shortage of housing and a house anyone can afford you likely will get 100 maybe 1000 offers per house. If it is a lottery then all you have done is
by quickthrower2 3y ago
Then given a shortage of housing and a house anyone can afford you likely will get 100 maybe 1000 offers per house. If it is a lottery then all you have done is made it so a lucky winner gets the house that would have been $1m for 250k say. So for the average person you have solved nothing infact they would be encouraged to leave for another city. Which is what a high price would have done.
- bandrami 3y agoAlmost. It keeps housing as a luck of the draw thing (since it doesn't address shortage) but it keeps more money moving around in the town's economy rather than sitting tied up in a house.
- quickthrower2 3y agoKind of! Here is the rub. When someone borrows $1m to buy a house, new money is created. Therefore the economy relies somewhat on borrowing to keep money flowing around.
- bandrami 3y agoYeah, lowering the money supply is a bonus, but more importantly a lower percent of the money supply will be in the form of current P minus current I.
- bandrami 3y agoAlso, not everybody would take the deal. People who want to resell at an appreciated price can, they just have to pay the higher property taxes in the interim.