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Real estate. The US economy floats on the perpetually-increasing cost of land. Thats where your mortgage money goes, to a series of finacial instruments to al
by sandworm101 1y ago
Real estate. The US economy floats on the perpetually-increasing cost of land. Thats where your mortgage money goes, to a series of finacial instruments to allow others to benifit from the eternally rising value of "your" property.
- nxm 1y agoMuch worse the case in Canada & Australia unfortunately
- ta1243 1y agoIt amuses me what's been true in the rest of the world (Vancouver, Sydney, Aukland and London come to mind but I'm sure it's not just the Anglosphere) for decades arrived in the US a couple of years ago and is suddenly a shocking new thing
- hrimfaxi 1y agoWhy is that amusing to you?
- ta1243 1y agoAmericentrism. America discovers that water is wet and suddenly out come the flags and eagles
- ahmeneeroe-v2 1y agoThat makes sense. Those other places don't actually matter, but America does.
- Kerbiter 1y agoCan't even understand whether you're being ironic or not.
- ahmeneeroe-v2 1y agoThey matter, but not like in the sense that Americans should care about them.
- hrimfaxi 1y agoIf something hasn't happened in your area before, it is new to the experiencer regardless of it having occurred elsewhere. If an area experiences a flash flood are you likewise amused by their exasperation at the novelty of their situation, despite it having occurred to plenty of other people in other places?
- franktankbank 1y agoMaybe this is our "resource curse"? We just happened to get rid of all the other resources first to get to stuck with this remaining?
- lotsofpulp 1y agoPart of it is a hidden tax on the young and workers, by making currency less valuable (what young people and workers have, the ability to earn cash) and transferring that wealth to old people and asset owners (to pay for pensions and healthcare). That is why mortgages are (future) taxpayer subsidized. Without the subsidies from the future, the real estate prices would not be able to rise so much. There is also economic agglomeration to exacerbate the issue.
- delusional 1y agoWorking class old people (the kinds that need pensions and healthcare) are not accumulating your wealth. Pensions and healthcare are nice in that they're almost immediately consumed. Nobody gets rich from needing financial help for healthcare. You should not look towards pensions and healthcare, but rather the actually wealthy old men. Those are who the ones stealing your future.
- lotsofpulp 1y agoProductivity doesn't materialize out of thin air. If something is being consumed, it has to be produced. And lots of old people, presumably more than you implied via "wealthy old men", plan on being able to consume in combination of selling the assets they have (either directly, or via some defined benefit pension fund manager selling and distributing them cash), and by receiving direct wealth transfers via cash or healthcare services.
- thesmtsolver 1y agoWell, it is much worse elsewhere. You should look at other countries where pay is much less and real estate is at similar levels of cost: from Europe, Canada, China, Australia and India. Condos in Mumbai are priced similar to those in the major cities in the US. https://www.reddit.com/r/mumbai/comments/zxsl8l/mumbai_real_estate_may_seem_cheap_compared_to_the/ https://www.reddit.com/r/mumbai/comments/zxsl8l/mumbai_real_... And Mumbai is one of the more affordable cities globally.