Except for us long suffering savers who have been getting reamed for the better part of two decades. Putting the grasshoppers in charge of monetary policy has done a number on us ants.You guys realize inflation hurts billionaires and helps regular people, right?
The average American is a net debtor. Billionaires are generally speaking large net creditors. Inflation decreases the real value of debt, which is why you see rich people constantly railing against inflation - it decreases their hold over you.
Wait, are you saying rich people want interest rates to be low? This seems to be the direct opposite of what they do in practice.Except for us long suffering savers who have been getting reamed for the better part of two decades. Putting the grasshoppers in charge of monetary policy has done a number on us ants.
And when your wages don't keep up? And when house prices go up, so do closing costs and property taxes.You guys realize inflation hurts billionaires and helps regular people, right?
The average American is a net debtor. Billionaires are generally speaking large net creditors. Inflation decreases the real value of debt, which is why you see rich people constantly railing against inflation - it decreases their hold over you.
Gotta stop using the government to ban housing construction then! If people want to see an actual decrease in housing costs that's the answer.Median Hawaii single family home price of $814K as of 4th qtr. last year.
My nephew in his twenties just bought what is considered an "affordable" new 2B2B townhouse outside of downtown for "a steal of a deal" @ $550K.
Even the luxury prime location tarp covered cardboard boxes our homeless live in have bidding/fighting wars over them.
It is absolutely bonkers. In my area, house prices have gone up by 20%+ and there are bidding wars. Houses are rarely hitting the market and are under contract before getting listed.
Why would wages not keep up? Inflation mostly comes from times of full employment where wages are rising rapidly.And when your wages don't keep up?
And when house prices go up, so do closing costs and property taxes.
In hawaii's defense, it's an island (or series of them). There's truly a finite area of buildable terrain. At some point you need to build up instead of out.Median Hawaii single family home price of $814K as of 4th qtr. last year.
My nephew in his twenties just bought what is considered an "affordable" new 2B2B townhouse outside of downtown for "a steal of a deal" @ $550K.
Even the luxury prime location tarp covered cardboard boxes our homeless live in have bidding/fighting wars over them.
Gotta stop using the government to ban housing construction then! If people want to see an actual decrease in housing costs that's the answer.
Well, there is hope for CA. They really need to pass that bill to overturn local zoning within X miles of transit at least.It is pretty odd to watch CA begin turning the corner on this while NY (and much of the northeast generally) keeps sinking into "more homes in a housing crisis are bad" territory.
I think this is mostly due to years of propaganda from rich people but I genuinely don't understand why people dislike inflation. If you have a mortgage inflation is your friend. If you have credit card debt inflation is your friend. The vast majority of Americans have these things.
I dont think so.You guys realize inflation hurts billionaires and helps regular people, right?
The average American is a net debtor. Billionaires are generally speaking large net creditors. Inflation decreases the real value of debt, which is why you see rich people constantly railing against inflation - it decreases their hold over you.
When my parents bought their house back in 1978 or so inflation was insane. They paid extra on it and paid it off in 7 years because a large amount of the mortgage payment was interest. You'll still see real estate tips websites telling you that if you pay one extra mortgage payment a year you can shave 12 years off your mortgage...this was true for a brief period of time and that period of time didn't overlap with the internet! Real estate ads took that advice from the 1980s and then printed it on the Internet for decades after it was true.
Very true - the Trump tax cuts essentially eliminated the mortgage interest deduction for most people. I used to save about $4,000 a year in taxes off of mine before then. What people often don't take into account is you know what's better than tax savings on the interest you paid? Not paying the interest to begin with!They do the same thing with the "big tax savings" from owning a house. That high interest also gave you a gigantic amount to deduct off your taxes, but at current rates only people with really huge mortgages (rich people and I guess people living in very HCL areas) have actually had much of a tax benefit from it. My own banal house and income had a tax benefit that started at a whopping $800/yr and went down from there. I think I got about 5 years out of it before the benefit went from paltry to non-existent. And Trump tax cuts basically devoured the remaining scraps since they pushed the standard deduction up so much.
What does your response have to do with my post?Wait, are you saying rich people want interest rates to be low? This seems to be the direct opposite of what they do in practice.
Rich people want interest rates high to keep inflation low to make sure regular people don’t get to escape the real value of their debts too easily. If you have a mortgage, inflation benefits you big time.
You seem to be claiming that monetary policy over the last few decades has been bad for savers, which I took as criticism of low interest rates. Generally speaking though inflation has been much too low for at least the last 12-13 years or so, which benefits savers.What does your response have to do with my post?
The problem with housing prices isn't low interest rates, it's that our housing supply is incredibly constrained by oppressive regulation.
I dont think so.
Rich people have real assets. Land. Homes. Stocks in companies that produce things of value. Gold. Silver. Power and influence over labor. Shit like that. Thats real value.
Money is not value. Money is a representation of things that have real value, like the stuff I just listed.
Poor people dont have assets. dont have capitol. Thats why they cant make more value, and turn it into money. Thats why they suffer whenever the rich are doing really well.
Well that's the thing though - with inflation wages generally go up as well. I'm not sure why people think inflation means wages are stagnant.When the cost of things in money goes up and you only have your paycheck and maybe something in the bank and no tangible assets, you are kinda losing value.