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View Diary: Paul Krugman: "Cheating Our Children" (51 comments)

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  •  pay frozen for several years (1+ / 0-)
    Recommended by:
    Sparhawk

    You do understand that housing prices and interest rates have collapsed.

    During the boom a house on my street might have fetched $250,000.

    Now that same house might fetch $100,000.

    To get the same pay when housing prices have gone down 60% means you can get 2.5 times more housing now.

    •  Re (0+ / 0-)

      Simple thought experiment.

      Food prices going down is (good/bad, pick one).
      Health care prices going down is (good/bad, pick one).

      Housing prices going down is...

      (-5.50,-6.67): Left Libertarian
      Leadership doesn't mean taking a straw poll and then just throwing up your hands. -Jyrinx

      by Sparhawk on Fri Mar 29, 2013 at 09:39:52 AM PDT

      [ Parent ]

      •  house are investments, others are expenses (2+ / 0-)
        Recommended by:
        lostinamerica, aliasalias

        so house prices going down in general are not a good thing for those already owning them or for local governments whose income depends upon real estate taxes based on market value - including of houses

        "We didn't set out to save the world; we set out to wonder how other people are doing and to reflect on how our actions affect other people's hearts." - Pema Chodron

        by teacherken on Fri Mar 29, 2013 at 10:26:23 AM PDT

        [ Parent ]

        •  In my youth (1+ / 0-)
          Recommended by:
          Sparhawk

          houses were places where people lived.

          It was thought to be a good thing if young people could afford to buy them and have a place to raise children.

          I'm looking at English houses today. The prices are often absurd. Instead of paying off a mortgage in twenty years like my mom did, the "children" of today and their government through "housing benefit" or Section 8 might be paying for their entire lives.

          My local huckster paper had a lead article about a so-called rental housing boom here in Florida where people such as the "children" would never get to own and would have to rent their entire lives [enslaved to landlords].

          I don't own investment property because it is too hard to find good tenants.

          I own a house where I intend to spend the rest of my life.

          I want America's young people to have access to affordable housing (It's no matter to me if my house is "worth" $100,000 or $250,000) so they can take care of themselves.

          In the long run of decades a house is worth little more than the materials from which it is made and the cost of labor to put those materials together.

        •  Local governments could tax by the (1+ / 0-)
          Recommended by:
          Sparhawk

          square foot.

          By taxing by "market value" the local governments are encouraged to drive the price up causing young adults to have to live with their parents and homelessness.  

          •  local government has no say in how they tax (0+ / 0-)

            it is subject to what is allowed by the state

            "We didn't set out to save the world; we set out to wonder how other people are doing and to reflect on how our actions affect other people's hearts." - Pema Chodron

            by teacherken on Fri Mar 29, 2013 at 03:16:48 PM PDT

            [ Parent ]

        •  Everything is an investment by someone (0+ / 0-)

          (-5.50,-6.67): Left Libertarian
          Leadership doesn't mean taking a straw poll and then just throwing up your hands. -Jyrinx

          by Sparhawk on Fri Mar 29, 2013 at 06:16:27 PM PDT

          [ Parent ]

          •  not really (0+ / 0-)

            when I buy a hot dog for lunch or fill my gas tank before I take a long trip there is no investment, merely a purchase for immediate consumption

            "We didn't set out to save the world; we set out to wonder how other people are doing and to reflect on how our actions affect other people's hearts." - Pema Chodron

            by teacherken on Fri Mar 29, 2013 at 07:34:59 PM PDT

            [ Parent ]

            •  And yet (0+ / 0-)

              If you pay less for the hot dog, or the gas, the vendor suffers.

              That's my point.

              You'd rather pay less for the hot dog, and the vendor would rather you pay more. All in all, society is better with cheaper hot dogs, gas, and housing, despite the fact that lower prices hurt some individuals.

              (-5.50,-6.67): Left Libertarian
              Leadership doesn't mean taking a straw poll and then just throwing up your hands. -Jyrinx

              by Sparhawk on Fri Mar 29, 2013 at 07:59:23 PM PDT

              [ Parent ]

              •  incorrect comparison (0+ / 0-)

                the correct comparison is dropping prices, where the hot dog vendor buys his dogs expecting to sell them for 1.25, but when he can only sell them for .95 is losing money.

                Nice try, but you are out of your depth in this.

                "We didn't set out to save the world; we set out to wonder how other people are doing and to reflect on how our actions affect other people's hearts." - Pema Chodron

                by teacherken on Fri Mar 29, 2013 at 08:12:33 PM PDT

                [ Parent ]

                •  That's why buying a house... (0+ / 0-)

                  ...is a business decision that involves risks and opportunities.

                  You can always avoid the risks by renting.

                  (-5.50,-6.67): Left Libertarian
                  Leadership doesn't mean taking a straw poll and then just throwing up your hands. -Jyrinx

                  by Sparhawk on Sat Mar 30, 2013 at 10:26:00 AM PDT

                  [ Parent ]

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