Monday, December 4, 2017

People are broke because of housing costs

Benefits freeze: Families facing another 12 months of misery

There's a massive problem here. It's not that people are having their benefits frozen. It's not that housing costs have risen so high. This tells me that housing costs are unnaturally high. We see state subsidy of housing in two ways: Help To Buy helps people afford otherwise unaffordable purchases - and of course, prices will rise by exactly the amount of this subsidy. On the rental side, we see that benefits help(ed) people afford otherwise unaffordable rents. In short, this means that government money is going directly into the pockets of property development investors (who buy early stage off-plan and sell to the end-buyer) and landlords. And we just sit there and watches as our money gets siphoned offshore, tax-free and hear this is a triumph of the "free market". BS, I say.

Posted by sneaker @ 06:58 AM (6229 views)
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4 thoughts on “People are broke because of housing costs

  • Dishonest to call it a benefits freeze. VAT and National Insurance have gone up enormously since 2010. Just to stand still, benefits would need to increase a lot rather than stay static. For most working age people, any benefits are just a partial tax refund. It is bonkers how much people on low incomes are taxed – what a waste of time and gross violation of private property rights. Yet the government keeps upping the personal allowance (£11,500) instead of the national insurance threshold (c. £8,500)

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  • What I don’t understand is why market forces aren’t working.

    If housing costs are so high that people are broke, they should come down.

    Why isn’t that happening?

    I mean you can’t eat bricks and mortar but you can choose to live somewhere cheaper.

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  • @1 – Government lies. Look at the lies the Trump admin give out for lowering Corporation tax and keeping CGT @15%. “It will bring back investment from abroad”. There are over 50 years of statistics to show that this is false. The money won’t return because it’s invested where labour costs are much lower, or in buying existing companies or stock buybacks to boost equities and management ‘earnings’.The purpose of the cut is to raise equities, on which the rich pay their 15%. Republican lies are that social services need to be cut so that the population doesn’t need to pay higher interest rates (on mortgages, credit cards and student debt) to pay for the higher deficit (anyway, the Fed would just buy the Treasuries rather than raise IRs and create havoc with derivatives).

    @2 What we have is pure looting – the financial sector turns discretionary consumer income into interest and fee payments to banks (rather than to provide capital for expansion). Debt is the force that keeps markets alive. Anyway, “I’m not broke, I own a half million-pound house, so the government should prop up the housing market”.

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  • I am 57 years old and worked since leaving school at 16 , I have been in my house for 32 years yet I have seen people in my street who have never worked a day in their lives do very well on benefits, and are still doing very well, they have everything I have , cars , holidays ect.
    the only thing they don’t have what I have is the stress of having a job , getting up for work and scraping the ice off my windows in winter and battling to work in snow . so nobody tell me that people on benefits are hard done to. I went in wetherspoons the other day and I could not get a seat, and im sure they are not all night workers. if I knew then what I know now then I would have run my life totally different as this country rewards the workshy and the failures in society

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