2 ms·
> That would be more aligned with renting. For most people, their house is the biggest purchase they’ll ever make. It isn’t unreasonable to expect it to at leas
by femiagbabiaka 3y ago
> That would be more aligned with renting. For most people, their house is the biggest purchase they’ll ever make. It isn’t unreasonable to expect it to at least keep pace with inflation so they can sell it and afford to move into a nursing home someday.
That sucks and we should fix it. It is unreasonable and unsustainable for housing to be that vector. Pensions once existed.
- lotsofpulp 3y agoDefined benefit pension fund managers invest in the same markets everyone else does. And the biggest DB pension, Social Security, already exists, along with the biggest nursing home payor, Medicaid. At the end of the day, it’s just allocating a certain percentage of the country’s labor to older people’s needs. Question is, what proportion of resources does society want to allocate to the country’s older people? Interest rate policy to support asset price increases is one way the government increases this proportion. But with declining proportion of working age population, these measures become more and more evident.
- voisin 3y agoWell you can rent and put the savings (vs owning a home) into a variety of vehicles for retirement savings. Many, many people have shown that this actually yields far more significant returns than the house. But people are not perfectly rational economic actors. There is something innate (or deeply culturally embedded) about wanting to have control over your living space, so it becomes the primary savings vehicle for many/most people.