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this post was submitted on 10 Oct 2023
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Capitalism works for small market. It fails horribly for large market like housing. A small market where everyone can participate and compete is totally fine. Big market where you already need to be rich as fuck to do anything is the problem. We are more and more in big market. Every business domain is big. There is no place for smaller player anymore. No one can just build their home anywhere they like. You need specialized people and that's a cost. Capitalism is totally fine when the market can be entered by anyone.
Capitalism does work for large markets, just not ones where the demand side of the market is structurally disadvantaged.
Distribution, logistics and warehousing are great for capitalism, for example. Healthcare and housing, though, very much are not.
You only need to be rich because of regulatory barriers, though.
Without such barriers, multiple people could buy a Toronto or Vancouver residential property (they're needlessly huge) and build many Japanese style homes (if not something more dense) on the plot. All very affordable when divided up.
We just can't do that because the government says "no".