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I think this is an important point since the cost of money is a big part of building and buying housing. There are other nuances contained in this exchange too.
by ldayley 2y ago
I think this is an important point since the cost of money is a big part of building and buying housing. There are other nuances contained in this exchange too.
But beyond cost of money what, if any, specific argument are you making regarding housing? Lower subsidies in hopes the market follows? Further restrict the money supply to try and contain inflation? There are lots of second order effects that are too broad here, like high interest rates acting as a de facto subsidy to the wealthy (who then, maybe, buy more real estate, etc...
- monero-xmr 2y agoThe problem is not that housing or rent is causing inflation. That is a second order effect of what really causes inflation - handing out money, especially to unproductive sectors. Because we cannot build housing quickly, it inflates. Other sectors of the economy hide inflation better via shrinkflation, cheapening and degrading the product (i.e. poor quality inputs), among other solutions. But you can't create new housing fast enough to hide the fundamental monetary inflation - the same issue applies somewhat to education, medicine, and other areas with supply that can't expand quickly (for their own varied reasons).