Not likely. You know that when a government subsidizes something it drives up the price. And there are numerous other ways the government drives up prices on homes (i.e., zoning, land use and growth control measures). A home in 1940s Alabama cost 16800 in year 2000 dollars. At that price, who needs a mortgage.
What should they do with Freddie and Fannie?
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Not likely. You know that when a government subsidizes something it drives up the price. And there are numerous other ways the government drives up prices on homes (i.e., zoning, land use and growth control measures). A home in 1940s Alabama cost 16800 in year 2000 dollars. At that price, who needs a mortgage.
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A home in 1940's Alabama was probably 10 x 20 feet.
For black people that's 6 x 8, although that trend continues to the modern times.
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Automobiles = Houses
This passes for logic in the pseudo-scientific Austrian circles.
Look you delusional libertarian twit, quote me the house prices in your dreamland Somolia and I'll get back to you.
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We ran an experiment on your Laissez-faire theory in the early 1900's that lead to something called the great depression. We didn't need to repeat it again, but we did in the 80's to now, which is leading to the second great depression. Liberalism, meanwhile, has never produced anything but prosperity and a happy middle class, something no other economic system in history has produced before. So taking those experiments as our controls, I will pick the one that came out on top, rather than the one that always fails.
Oh, I see, you are trolling.
Anyway, no automobiles != houses. But what is special about the housing market that has caused prices to spike so dramatically compared to other goods. The only things that might have gone up in price faster are education and health care. Hmm, I wonder if they have something in common?
Anyway, no automobiles != houses. But what is special about the housing market that has caused prices to spike so dramatically compared to other goods. The only things that might have gone up in price faster are education and health care. Hmm, I wonder if they have something in common?
uscitizen
Villified User
and what was the average Alabama income in the 40's ?
Or we can go your way and find that we can all live in squalor provided by the beneficent government.
uscitizen
Villified User
Umm the free market seems to be providing squalor as well.
It isn't a free market. It's pretense for you to say it is.
uscitizen
Villified User
No it is not and getting less so since the free market aspects are having to be bailed out by the govt.
Again, it wasn't a free market before this. When laws force you to give loans, etc, it is not a free market. It gets sad to watch people blame something that never existed in an attempt to say that it wasn't their fault.
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Have house prices risen at different levels in any other developed economy RS? Is there any place in the world you can just go and buy a nice 2000 square feet house for fourteen-thousand dollars?
Have you ever considered that maybe the quality of houses have gone way up? And that increasing population has driven land prices way up? The problem with adjusting to inflation alone is that it nearly always presents a rose colored picture of the past - wealth rises faster than inflation, and so people are putting more and more and more into their house with the extra income.
Because, you see, for you to prove that if we just let the jungle reign we'd have a perfect housing market where full houses were worth fourteen thousand dollars, we'd have to run the experiment on the economy. We've already ran that experiment, it failed, and no thankyou. BTW, FDR created freddie and fannie. So they were there in 1940, and they had a government enforced MONOPOLY.
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uscitizen
Villified User
the free market lobbied long and hard for congress to "force" them to give out those kinds of loans. They got what they asked for.
They were just not smart enough to leave well enough alone.
You also seem to be ignoring all the predatory loan practices that have gone on for years.
No, I'm not. I am pointing out that it is a heavily regulated market, not a "free" market. Keep on target rather than trying to, how do you say it..... oh yes... grab a different nit bucket.
The reality is that this industry in particular could never be said to be "free market". It's laughable to try to say it is.
I don't know, but it was most likely quite a bit less. Your point?
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Maybe they had to design houses that fit the areas income? HMMMMM?! Naw, that's crazy talk. It was definitely the neoliberalism that prevailed in the thirties and fourties under FDR that did it.
uscitizen
Villified User
My point is that if you make 7 k per year 16k for a house is quite a sizeable purchase. I think the average auto was about 1k maybe back then.
Lobbying is not a sign of a "free market". That's like saying that the USSR's economy was free because the leaders accepted bribes.With Fannie and Freddie free enough to lobby congress it is more free than you let on.
on my nit bucket idea.
The only version of the "free market" you might ever get close to is the black market.