4 ms·
The 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 u
by monero-xmr 3y ago
The 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).