RSSJack Layton wants to depress house prices further
Jan 25
I heard Layton on CBC today talking about economic stimulus. He said he wants to use stimulus money to build houses.
What the hell? The current recession is caused, in large part, due to falling housing prices. Doesn’t he realize that adding more houses to the market will lower prices further?
I hope the Liberals aren’t so crazy.
Jan 25, 2009 @ 20:30:19
You left out Jack is specifically talking about a national affordable housing construction program. As well the Liberals included that in the 2006 federal budget, because investors are gobbling up the rental housing units for fast profit and they don’t even stay in the country. In 2006 there were an estimated 150,000 to 300,000 homeless people in Canada.
Jan 25, 2009 @ 20:56:56
And what the fuck is wrong with making housing affordable for working Canadians. A house is first and foremost a home, not just a tax free investment for the wealthy.
Jan 25, 2009 @ 21:59:28
Problematically, though, housing prices are far too high. There’s a housing bubble and it needs to burst — trying to sustain it will only delay the pain. So, while Layton’s suggestion might reduce the price of houses, that’s going to happen anyway. The question is whether his idea will produce sufficient other benefits to make it worthwhile.
Jan 25, 2009 @ 22:31:50
@Toe: I didn’t leave anything out, that’s what he said on national radio. No other details. If he was talking about affordable housing, given the nature of the current problems why on earth would you propose building MORE HOUSES? Why not buy some of the houses whose value has dropped considerably? Heaven forbid a government program use some intelligence to purchase something at a fair value rather than building a new one for no reason.
@rww: Given your language in a public forum, I assume you’re too young to be a taxpayer, so please move on from this discussion.
@ADHR: Yes, housing prices are too high in many parts of the country. I’m not proposing anything that would sustain housing prices. But, given that prices are inflated, the government would be building new houses that would conceivably not be worth what was paid to build them. So, why not buy one instead for a lower price?
And, to everyone: If what Jack’s proposing is a bailout package for housing construction workers, then great for him, but say so. Don’t go on national radio and say simply that he wants to use stimulus money to build new houses. I don’t agree with it in either case, but at least if there are more details to what he’s proposing, then maybe there’s a method to his madness, rather than just raving madness.