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April 17, 2019

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dilbert dogbert

Just back from the dentist where was reading a Nat. Geographic about a local man who commutes 8 hours a day from Auburn CA to his bank job in SF. This has been a common thing in California for decades.
My wife makes that trip occasionally to visit the grand child in San Jose. She hates driving in the traffic down there.
Some have said the housing market is the business cycle. Our house in Palo alto has increased 2million dollars in 10 years. Crazy!

Nicholas Gruen

I wrote about RCTs as the new front for our discipline's serial scientism here

D

Does anyone know of past attempts at broad spectrum policies?

Ralph Musgrave

Grace Blakeley’s argument is: “House prices are too high, which makes it difficult for people to buy houses, so the solution is to restrict mortgages which makes it even more difficult for people to buy houses.”

Or have I missed something...:-)

James Peach

The FPC’s housing interventions already act as a non-binding constraint on house prices, by limiting the ratio of house prices to incomes. These sorts of interventions are probably the most sensible - they curb the worst excesses of the housing market while not second guessing market prices.

James Peach

And yes Ralph... it seems at IPPR they pump out ideas before thinking them through.

Avraam Jack Dectis

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Fully agree with the analysis of the nature of the problem.

The hard part is the solution.

Constraints via mortgages and taxes are bureaucratic, expensive and inefficient.

Basic supply and demand suggests that if you want the price of something to drop, you have to increase the supply.

It should be a core governmental responsibility to engineer a surplus of desirable housing.
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Bob

What is really needed is 100% land value tax on the unimproved site value of land, not including buildings and improvements, just "location, location, locatioN" value which via progressive tax reform can replace 20p rtae (to 0p), VAT and Corporation Tax, with the rest going to fund a basic income.

Secondary policies could include banning all bank lending except capital development (0% overdrafts capital development) and a Job Guarantee - guaranteed jobs offer of work near where you live with the hours you want.

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