Jump to content
House Price Crash Forum
Sign in to follow this  
AmateurEconomist

Can A Nation Build A Future If It Has Hpi?

Recommended Posts

Leaving the issue of fairness aside, the argument that HPI is counter-growth is simple yet compelling. Essentially HPI is a shift of income and wealth from the young to the old (except when parents pay towards their kids' house purchase). The typical old will either buy 'consumer goods' or a second home in a cheaper country (and making them wealthier). And the young will have to work longer hours to pay the larger debt, a time that could have been spent in learning a new skill or starting a new business (investment).

So all a HPI does is shift spending away from investment towards consumption.

How can that be good for the country?

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.