Yea, the governments still need to help out even when private equity control the market Its not working, and no one but the government can lead the market with intentionality These private firms cannot see past the quaterly growth targets
Brilliant analysis. Murray is solid gold. Pretty good thesis that current housing correction is happening in real terms, masked by inflation pushing up nominal prices. As a life-long renter with liquid inflation-protected assets, I feel pretty smug right now.
MMT provides some complimentary answers to how governments can provision public services and counters the narrative of the 'free market' centered universe of standard economics.
Economics is a problem of distribution. There so much land, resources, and time which are transferable/represented by cash. If all the iron, all the land, all the construction workers are used to do what the wealthy want, then the poor will not get what they want. But what about investment helping all? investment has to make a profit over 10 years and education, housing, etc don't turn profits in that time leaving it unfulfilled. take those resources land and take all the people who want jobs to work building the stuff they want/need.
1:39:17 one thing that might be worth considering about vacant land being activated and the "temporal transference" is that there are more then two actors in some transaction. Land bankers have different activation criteria compared to builders. And builders have different requirements then land lords / single owner occupiers. A land tax might be more willingly born by someone who is getting active value (rents/living space) then from someone using it as a store of value
I feel like other forms of ownership are ignored in these conversations. I live in an unsubsidized non-profit appartment not owned by govt or business. There's no need for a market
We need to make it expensive to not develop. We also need to increase public competition with the market supply of housing. Finally, how low should rent be? Low enough for everyone to be indoors. People who make more can pay more off course.
I'm going to remix a quote from you: we've found an incredibly high IQ way to manage our land in the most moronic fashion possible. The very concept of land ownership is the problem here, the idea someone can have the right to section off a piece of space to the exclusion of all others as they see fit creates an inherent poverty dynamic in which the owner has power over the non-owner. We can keep bending ourselves out of shape trying to figure out how to make the Landlord-tenant relationship less coercive, but you really can't.
I'm not far into this vid but I'm just annoyed and shocked I don't know just at the predictable stupidity of this all. We can never seen to understand these problems because we're never allowed to so we can never fix them. It always seemed obvious to me that house prices are never going to decline, because everyone that owns or wants to build homes will never allow it. I feel like we will very we will reach problems with this though as populations increase way above the housing levels. But then I can see no matter what there is no and never will be any incentive for any governments to do anything about this that will properly fix it. Governments will just happily accept the homeless and shanty towns or whatever and blame those people that cannot afford the houses rather than anything else. edit: Although eventually as another economist pointed out this will end up in an economic collapse of sorts. The transfer of wealth to the rich will continue until the rich has all the money and the rest of us has none, and in the current UK I don't think that will take very much longer.
36:00 ish - subside housing... so what your really saying is to redistribute "purchasing/market power"... redistribute 'wealth'... eat the rich! Take the money used to pay personal maids, tutors, and shipyards for yachts and let people or gov spend it on services, education, and housing.
and later I realised they also talk about the other half. the problem of profit. have the government limit proffiteering. there are many ways to do it, but owning a portion of the housing supply is important:)
I'd really like to know why to rent the house I live in would be more expensive than my mortgage repayments. It's crazy!!! and what can government/bank policy do to solve this problem?
Steve keen just released analysis of credit growth and house price growth, the correlation is strong, and as far as I can tell credit growth leads and housing prices follow. Unfortunately he didn't look specifically at housing credit growth, but my take away is that banks dictate the price of housing except for luxury housing. Check it out on Steve's CZcams channel. This conversation seems to be more of a consideration of distribution rather than underlying price forces, Murray seems to be saying build smaller houses so they will be cheaper. To answer your question, regulate banks such that they cannot generate a loan that will allow negative gearing, or in other words, set the value of the asset based on how much rent that same property would receive. So the house becomes an investment that will pay itself off rather than relying on asset price inflation to cover the difference. In terms of not removing income from the wealthy land owners, consumption will rise because less interest is being paid, so investment opportunities will arise in services and products ie velocity will increase.
I would actually rather wipe trillions of dollars of value because that’s sounds a lot meaner and landlords deserve for society to be mean to them. Thanks for coming to by D.E.D. Talk.
I'm not defending him, but where did you get the 9 homes number from? I can only find that he registered 3 and one has been deleted as it was sold? I agree though it's shocking optics that Andrew Charlton bought another mansion - I understand he can afford it, but I'd rather they didn't own investment properties and only had investments in things like funds or perhaps assets with better public optics.
Did you really listen to this whole thing and come away thinking the private sector is the answer to housing? I don’t care how much land the union leaders own if everyone else can also have safe cheap shelter, and the private sector is historically awful at providing that.
@@finalcut612the libertarian theory of government - things will get worse and worse as government regulation is reduced, until suddenly it gets WAY better when government regulation is reduced to contract and property rights enforcement
Housing being left in the unilateral control of the private for profit sector is why housing in the West all sucks. The land down under isn't immune.
Yea, the governments still need to help out even when private equity control the market
Its not working, and no one but the government can lead the market with intentionality
These private firms cannot see past the quaterly growth targets
Brilliant analysis. Murray is solid gold. Pretty good thesis that current housing correction is happening in real terms, masked by inflation pushing up nominal prices. As a life-long renter with liquid inflation-protected assets, I feel pretty smug right now.
I disagree with some of Murray's politics but his housing stuff is great
Just got here, thanks for covering this subject!
MMT provides some complimentary answers to how governments can provision public services and counters the narrative of the 'free market' centered universe of standard economics.
Economics is a problem of distribution. There so much land, resources, and time which are transferable/represented by cash. If all the iron, all the land, all the construction workers are used to do what the wealthy want, then the poor will not get what they want. But what about investment helping all? investment has to make a profit over 10 years and education, housing, etc don't turn profits in that time leaving it unfulfilled. take those resources land and take all the people who want jobs to work building the stuff they want/need.
1:39:17 one thing that might be worth considering about vacant land being activated and the "temporal transference" is that there are more then two actors in some transaction. Land bankers have different activation criteria compared to builders. And builders have different requirements then land lords / single owner occupiers. A land tax might be more willingly born by someone who is getting active value (rents/living space) then from someone using it as a store of value
I feel like other forms of ownership are ignored in these conversations. I live in an unsubsidized non-profit appartment not owned by govt or business. There's no need for a market
We need to make it expensive to not develop.
We also need to increase public competition with the market supply of housing.
Finally, how low should rent be? Low enough for everyone to be indoors. People who make more can pay more off course.
I'm going to remix a quote from you: we've found an incredibly high IQ way to manage our land in the most moronic fashion possible. The very concept of land ownership is the problem here, the idea someone can have the right to section off a piece of space to the exclusion of all others as they see fit creates an inherent poverty dynamic in which the owner has power over the non-owner. We can keep bending ourselves out of shape trying to figure out how to make the Landlord-tenant relationship less coercive, but you really can't.
I'm not far into this vid but I'm just annoyed and shocked I don't know just at the predictable stupidity of this all. We can never seen to understand these problems because we're never allowed to so we can never fix them. It always seemed obvious to me that house prices are never going to decline, because everyone that owns or wants to build homes will never allow it.
I feel like we will very we will reach problems with this though as populations increase way above the housing levels. But then I can see no matter what there is no and never will be any incentive for any governments to do anything about this that will properly fix it. Governments will just happily accept the homeless and shanty towns or whatever and blame those people that cannot afford the houses rather than anything else. edit: Although eventually as another economist pointed out this will end up in an economic collapse of sorts. The transfer of wealth to the rich will continue until the rich has all the money and the rest of us has none, and in the current UK I don't think that will take very much longer.
good talk
36:00 ish - subside housing... so what your really saying is to redistribute "purchasing/market power"... redistribute 'wealth'... eat the rich! Take the money used to pay personal maids, tutors, and shipyards for yachts and let people or gov spend it on services, education, and housing.
and later I realised they also talk about the other half. the problem of profit. have the government limit proffiteering. there are many ways to do it, but owning a portion of the housing supply is important:)
I'd really like to know why to rent the house I live in would be more expensive than my mortgage repayments. It's crazy!!! and what can government/bank policy do to solve this problem?
Steve keen just released analysis of credit growth and house price growth, the correlation is strong, and as far as I can tell credit growth leads and housing prices follow. Unfortunately he didn't look specifically at housing credit growth, but my take away is that banks dictate the price of housing except for luxury housing. Check it out on Steve's CZcams channel. This conversation seems to be more of a consideration of distribution rather than underlying price forces, Murray seems to be saying build smaller houses so they will be cheaper. To answer your question, regulate banks such that they cannot generate a loan that will allow negative gearing, or in other words, set the value of the asset based on how much rent that same property would receive. So the house becomes an investment that will pay itself off rather than relying on asset price inflation to cover the difference. In terms of not removing income from the wealthy land owners, consumption will rise because less interest is being paid, so investment opportunities will arise in services and products ie velocity will increase.
Landlords are an arbitrage. People who don't have the money / don't make the steady income to qualify for a mortgage have to rent.
Maintenance?
I would actually rather wipe trillions of dollars of value because that’s sounds a lot meaner and landlords deserve for society to be mean to them.
Thanks for coming to by D.E.D. Talk.
mansion 3 level 6 bed sold in stathfeild 12 million . the mansion would have cost 6 million to build 6 car garage ' pool & tennis court
Singapore.
90% land owned by governmemt lefty
saying equilibrium this much about unstable capitalism is a mark of ignorance.
1:25:05 It's SUPER Capitalism.
albonese own 9 homes and first time in history labor mp bought a 12 million dollar holiday home
I'm not defending him, but where did you get the 9 homes number from? I can only find that he registered 3 and one has been deleted as it was sold?
I agree though it's shocking optics that Andrew Charlton bought another mansion - I understand he can afford it, but I'd rather they didn't own investment properties and only had investments in things like funds or perhaps assets with better public optics.
he doesnt mention union leaders & poltical class own more land today than 2yrs ago ! government power the problem why more rent not own a home
Did you really listen to this whole thing and come away thinking the private sector is the answer to housing? I don’t care how much land the union leaders own if everyone else can also have safe cheap shelter, and the private sector is historically awful at providing that.
@@finalcut612 union leaders is government aswell are you stupid ???
what country are you talking about
@@finalcut612the libertarian theory of government - things will get worse and worse as government regulation is reduced, until suddenly it gets WAY better when government regulation is reduced to contract and property rights enforcement
Australia @@helagewurz-ketchup6124