It seems that rent cause a massive strain on the economy and such up all the growth by causing essentially taxation.
Any time workers get a raise, the landlords raise the rents to get the money for themselves.
Any time bussinesses create more value, the landlors raise their rents, to get as much share as possible.
This causes an endless cycle where everything gets more and more expensive so that businesses can pay their rents, people asking for higher and higher wages to pay their rents and buy the even more expensive goods and services, while all the extra money ends up in landlords' pockets, who don't need to create any extra value to justify the increased rents.
Creating more real estate is often not possible and the owners are often perfectly happy to leave buildings empty so that they can keep the rents high.
This is eventually followed by people leaving the city as it is no longer profitable to stay in the city and the city's real estate market collapses as everybody goes either bankrupt or moves elsewhere.
Is there a solution to this problem? How could we create real estate market which is not prone to price gouging and bubbles?
How is that a problem? You just have to buy low and sell high. No one forces you to take a bad deal
Aaron Turner
>debt free money What's that? You need a place to live and run your business. You still need to pay the increased rents the busnisses must pay in the prices of their goods and services.
Lincoln Jackson
Just fuck off, go conduct your focus group somewhere else socialist
Christopher Sanders
Buy SENT
Gavin Hernandez
And you have many options in cities or suburbs with different characteristics. If the trend is the same across all of them, that's how much it's worth, no one is scamming you.
Gavin Perry
No. It functions no different than any other sector of the economy. It's profit levels are on average about the same. There's no landlord cabal. House prices go up at roughly equivalent, so there's no rent gouging.
The universal you are looking for is Georgism. If there's an issue with the land sector, it has nothing to do with rent [you could make the same argument regarding people "raising" interest rates to exploit profitable businesses], it has to do with the ownership of land itself.
I'm not a Georgist myself, but at least adopt a position that requires thought to refute.
Mason Ross
>This is eventually followed by people leaving the city as it is no longer profitable to stay in the city and the city's real estate market collapses as everybody goes either bankrupt or moves elsewhere. Citation needed
