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When a Housing Boom Turns to Bust (Patrick Boyle) (youtu.be)

submitted 1 month ago by nsh to c/politics

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Now, if you live in the United States, Canada, or the United Kingdom, you might be wondering why you should care about the real estate market on an island in the South Pacific. The answer is that New Zealand is basically a laboratory for what happens when an entire national economy is built on the assumption that house prices will just go up forever. It turns out that trading the same increasingly expensive boarded up bungalows back and forth with your neighbours does not actually generate any real wealth. You might ask how an economy gets into this position. The answer, as is so often the case, involves politicians. (~02:00)

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[–] Dave 6 points 1 month ago (9 children)

I haven't heard of this guy before, and a top result when searching for his name is how he plagiarised the NYT... (not this video, a different one)

Interesting part in the middle of the video where it's mentioned that globalisation caused everything to decrease in price, so central banks could just keep cutting interest rates without having to worry about inflation. Now that goods can't really get any cheaper, it no longer works, and now inflation is rising and there's no clear path to solving it other than increase interest rates and cause house prices to fall - which is political suicide.

The whole concept that rising house prices are bad for almost everyone is so easy to demonstrate, but virtually everyone is happy when their house value goes up for some reason.

[–] MadPsyentist 2 points 1 month ago

People often vote against their self interests. It is especialy easy to "baffle with bullshit" when it comes to the housing market.

We see this happening with scientific discourse and political discourse across the world. People just want a simple answer and science/politics/finance cant give it to them, because it always "depends", so they defer to the people with the simple answers ( liers ).

A person is smart, we the people are pants on head retarded.

So to answer why people want their house to go up in value even though it is detrimental to society, because "Your worth just increased by $100K" is a simpler answer than "Yes your largest asset increased in value but you still need a house so if you sell you still need to buy a house that has increasd by the same amount in the same time"

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