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Can A Nation Build A Future If It Has Hpi?

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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?

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  • 301 Brexit, House prices and Summer 2020

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