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In corporate environments people often get into a frame of mind where they acknowledge they are behaving irrationally but are convinced - convinced! - that beha
by roenxi 1y ago
In corporate environments people often get into a frame of mind where they acknowledge they are behaving irrationally but are convinced - convinced! - that behaving rationally would bring terrible results and everyone is going to move in mad lockstep. I think it is some sort of groupthink-related phenomenon. They're pretty much always wrong about the bad results if someone can force change.
It can be true that sudden change can lead to bad results and I wouldn't necessarily advise shock therapy, but making the basis of a system more rational usually leads to good outcomes. Being honest about how valuable something is won't cause society to sink beneath the ocean and neither does letting people just build houses on land they own. Someone is already eating economic losses here, we just don't quite know who or how much. Letting them do better will surely outweigh the negatives.
- blitzar 1y agoI don't advocate for the current system - but the western capitalist system is (rightly or wrongly) based heavily around property. > Someone is already eating economic losses here, we just don't quite know who or how much. It's an intergenerational transfer of wealth from the young to the old. Rough and dirty you could probably reverse back the amount by taking the change in Average house price-to-earnings ratios. Very basic estimate is from 4x earnings to 7x, which on the stock of US housing is about $20 trillion.