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The immediate conclusion is that if there's an excess demand prices will go up in order to reach a new equilibrium. And this exactly what seems to be happening
by lottin 2y ago
The immediate conclusion is that if there's an excess demand prices will go up in order to reach a new equilibrium. And this exactly what seems to be happening in the housing market.
- toyg 2y agoPrice equilibrium is a myth, in practice it's never observed. The reality is inflation, because the greed of man is unbound.
- appreciatorBus 2y agoIf greed of man is unbound, how come computers, TV's and airplane tickets are so much cheaper than decades previously? The idea that people involved in housing are some how uniquely greedy has a long history and it's just wrong. People who own housing - homeowners & landowners - are able to be more greedy than others because they are part of a cartel. The debate over housing reform & housing supply is about whether or not enforcing that cartel should be a government function.