On Tue, 30 Sep 2008 22:31:58 +1000, Bill Bartlett <billbartlett at aapt.net.au> wrote:
> "Speculation" by home owner-occupiers isn't the problem.
I agree, but I do believe it is often a part of the motive, as is often an idea of escaping your class.
On it's own, it is not the problem for many of the reason you say: Unfortunately you can't usually buy rent unless you are particularly shrewd, lucky, or more likely well-connected.
Whether or not it is part of the problem, I am not sure why this practice should be subsidized. It is certainly not the solution.
> Home owner-occupiers consume housing in other words, they aren't
> capitalists.
Indeed.
However I believe we should not worry about subsidizing this form of housing, which is less than ideal for many reasons, instead of addressing the problem of housing generally, including those who lack adequate housing or pay a disproportionate share of their income for housing. Why should we support a "bailout" of mortgage-holders but not those who are racked by rent? Or homeless? Or unable to move out of overcrowded housing provided by others?
Also, a bailout of mortgage-holders would unlikely be selective for owner-occupiers only. If anything I would expect most of such a bailout to be gobbled up by those who hold mortgages on property they intended to rent to occupiers, as these type of owners would be better able to fight for their share, as usual.
> The real problem is speculators who buy more housing than they need
> for use, in the expectation of inflation of house prices. These
> speculators need to be crushed, by flooding the market with
> affordable rental housing (to depress the market price of rental
> housing) and houses for sale.
Exactly, $700bn would go a long way to fund co-operative and public housing.
[...]
> But owner-occupiers, as such, are not the problem, never have been.
> You are being irrational and emotional to suggest such a thing. Bot a
> proper socialist at all.
Which is why I never suggested such a thing.
Cheers.
-- Dmytri Kleiner editing text files since 1981
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