Housing is I think the new edition of the age old rent problem, which vexed Ricardo and was the main point of study of early economists. Housing/land supply won’t increase with the rise in price, hence the market mechanism will not maximize the output and wellbeing of the society as a whole, but just the price and profits of the rentier. Hence various suggestions of how to deal with the problem, usually revolving around government ownership of land and/or rent expropriation
This is interesting. I agree that housing is at the crux of the problem in almost every English-speaking country. Given that the UK, like other Anglophone democracies still has strong traditions of the rule of law - expropriating the land banks of property developers I think is highly unlikely. Further the government balance sheet is too stretched to undertake major projects. Would a housebuilding boom benefit the listed developers instead - as they become inevitable partners in meeting government goals?
I must chuckle at the idea that policy changes will be able to impact the birth rate. That has failed in Japan, China and every other country that has attempted it. Add to that the ongoing climate hysteria and there is a large segment of the prime family demographic that is too frightened to even consider the concept of having a large family.
Clearly housing is a major problem, but it will take either a major shift in thinking, or the passage of time until the older generations simply die off and more housing becomes available to address this issue. I fear the latter is more likely than the former. we could well be in for a period of slow and inefficient growth with ongoing political ructions on a regular basis, both within nations and internationally.
Housing is I think the new edition of the age old rent problem, which vexed Ricardo and was the main point of study of early economists. Housing/land supply won’t increase with the rise in price, hence the market mechanism will not maximize the output and wellbeing of the society as a whole, but just the price and profits of the rentier. Hence various suggestions of how to deal with the problem, usually revolving around government ownership of land and/or rent expropriation
I like the historical survey you made, Russell, and as one who reached adulthood in the UK during the 1960s, I feel it rings true.
This is interesting. I agree that housing is at the crux of the problem in almost every English-speaking country. Given that the UK, like other Anglophone democracies still has strong traditions of the rule of law - expropriating the land banks of property developers I think is highly unlikely. Further the government balance sheet is too stretched to undertake major projects. Would a housebuilding boom benefit the listed developers instead - as they become inevitable partners in meeting government goals?
I must chuckle at the idea that policy changes will be able to impact the birth rate. That has failed in Japan, China and every other country that has attempted it. Add to that the ongoing climate hysteria and there is a large segment of the prime family demographic that is too frightened to even consider the concept of having a large family.
Clearly housing is a major problem, but it will take either a major shift in thinking, or the passage of time until the older generations simply die off and more housing becomes available to address this issue. I fear the latter is more likely than the former. we could well be in for a period of slow and inefficient growth with ongoing political ructions on a regular basis, both within nations and internationally.
How do you get housing costs down whilst interest rates go higher and produce more housing?