Wednesday, December 7, 2016

High house prices are a measure of poverty

Housing crisis 'creates in-work poverty'

The JRF study suggested that in-work poverty was driven by housing costs, especially in the private rented sector, where the numbers living in poverty had doubled to 4.5 million in a decade. This was the key factor behind London recording the highest poverty rate at 27% - 6% above the UK average, according to the study.

Posted by quiet guy @ 10:56 AM (8372 views)
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3 thoughts on “High house prices are a measure of poverty

  • When people have no choice but to hand over whatever landowners can get from them, of course it’s going to result in poverty. Landlords and homesellers aren’t going to pass up any extra loot that they can wring out of a captive market.

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  • Yes, but it’s worth pointing out that the rentiers are not just landlords any more There’s also bankers, who create money (the BoE basically said that banks were money factories, not money warehouses) and lend it to bid up property prices and mortgage repayments, and monopolists.

    (btw, Ricardo, who is portrayed as pro-capitalist (in the good sense) because he wanted to import grain to cheapen its price instead of letting British landowners fatten off their grain monopoly (the consequent reduction in landowners’ wealth would go to capitalists to re-invest), was in fact a bankers’ lobbyist – bankers were to fund and facilitate the international trade and get involved in international financial transactions and currency swaps. His emphasis on international specialisation was all about bankers’ being able to intrude their ‘services’ into the system.)

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  • Interesting take on ricardo’s law of rent, who collects the rent? landowners or bankers depending on structure of economy. I like it!

    Rent is much more complex than a dialectic between banks or landowners: intellectual property rights, legal monopolies etc and most of our economy is a vast complex web of economic rents. Unpicking that mess is super complex, but a Heavy Land Value Tax, Monetary reform and strict limits on intellectual property rights would make a huge dent in monopoly as in many ways its is the base monopolies of land, money, legal and intellectual that allows the banks to feast upon that rent. If it was not there then the banks could not take it….

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