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Jonathan's avatar

Meanwhile as far as I know various hedge funds are buying up thousands upon thousands of dis-possessed houses all over the country and then reselling them or renting them out at much higher prices which the ordinary person including the now precarious and rapidly diminishing middle classes can no longer afford to buy. They quite literally own tens of thousands of houses.

Even the once prosperous middle classes can no longer afford to buy, or even rent houses. Many such people need to hold down several jobs even to survive, most of which a very low paying mac-jobs with no security. Countless millions of Americans are one pay cheque away from financial ruin. Even adjunct university professors have much difficulty in getting by.

We have the similar problems here in Australia. Using various tax minimizing strategies including what is called negative gearing introduced by "conservative" governments investors can now easily out compete and therefore exclude young couples from buying/owning a house. Houses are now largely considered to be an income producing asset rather than a place to live and raise a family. Such assets are essentially funded by the tax-payers.

Any proposal to even wind back such lucrative strategies are inevitably shot down in flames. Two elections ago the mildly leftish government flagged the idea of winding such tax-payer funded perks - it was immediately shot down in flames.

Once upon a time here in Australia the various state governments invested in and built significant numbers of very affordable public housing, mostly in the form of 1 or 2 bedroom units. Even people on various forms of social security payments could afford to rent them. Over the past 20 years or so the construction of such public housing has all but disappeared.

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Eli Flamel's avatar

Individualism vs collectivism is a spook, a shallow caricature of political philosophy masquerading as socioeconomic critique. Case in point, the category error you are making between individuals making selfish decisions (NIMBYs) and the actual fact that they are imposing their will on others via the collectivist state (lobbying). In political philosophy such a use of the legal and regulatory system, to the point of invoking neighborhood votes in a democratic manner, is a collectivist process. Don't pollute your analysis with the layman understanding of "individualism is when people are selfish."

I'll direct you to "The Housing Crisis is the Everything Crisis" on YouTube. The conclusion is "build more houses," but the examples demonstrating the problem overwhelmingly show that the collectivist structures we live under are largely responsible for creating the environment that housing is an investment vehicle, and the behavior of massive corporations are just a symptom.

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