Money supply expansion and attempts to suppress its effects are what is killing the west. That and usury, and a lot of dishonest people.
Like if we jack up mortgage rates to 100% housing prices would drop massively right? Okay at some point mortgages weren’t widespread and now they are, therefore a large percent of the increase in housing costs comes from mortgages enabling the bidding up of housing and land by pulling future earnings into the present. The effect on land is zero sum, and while the effect on the structure is positive sum to a degree (it’s a big contributor to housing getting bigger than it used to be and bigger than it needs to be), the overall effect is negative and so we would be vastly better off banning the practice. Of course that will never happen, but I find it curious that it isn’t even discussed.
Like if we jack up mortgage rates to 100% housing prices would drop massively right? Okay at some point mortgages weren’t widespread and now they are, therefore a large percent of the increase in housing costs comes from mortgages enabling the bidding up of housing and land by pulling future earnings into the present. The effect on land is zero sum, and while the effect on the structure is positive sum to a degree (it’s a big contributor to housing getting bigger than it used to be and bigger than it needs to be), the overall effect is negative and so we would be vastly better off banning the practice. Of course that will never happen, but I find it curious that it isn’t even discussed.