Quote:
Originally Posted by unit
re: affordability
yep true, i definitely agree that life has gotten significantly worse in the last 10 years in terms of affordability, who can really deny that? the question is how much of it is due to global effects and how much from gov policy? also what would opposing parties have done differently, not in hindsight, that would have curtailed the affordability crisis?
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IMO, the affordability crisis is largely a global phenomenon, although of course I don't think very many governments actively took proper measures to protect its citizens from it.
In the multiple rounds of Quantitative Easing (across the globe), the extra gob tons of money really had to go somewhere. On the other hand, the vast manufacturing prowess from China and other 3rd world countries also meant consumer goods didn't really see much inflation at all. In Canada, a very large chunk of that money went into inflating our RE market. In the US, it kept rallying the stock market.
And while this was occurring, of course it was the rich that was in the best position to capitalize on the opportunity because they have both the smarts and the wealth to pull it off. In that regard, they definitely played a big role in worsening affordability for the general public. But can I blame them for doing this? I am not so sure because anyone with the means to grow and protect their wealth would probably do so.