Comment on What is an average person living in the US supposed to do about corporations raising prices?

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chicken@lemmy.dbzer0.com ⁨11⁩ ⁨months⁩ ago

I am not, I intended the person with 300k in this example to represent the whole class of people with less. Your assumption seems to be that the accumulating mass of wealth held by the few is just not in competition for houses, but that begs the question, why wouldn’t it be? You can extract rent from housing to profit on it over time. It serves as a safe investment very likely to increase in value. You can convert it into other forms of real estate. You can have multiple homes for convenient travel.

An important feature of supply and demand is that the weight of demand doesn’t depend on a quantity of people, but a quantity of money. If no one ever had a reason to want more than one house for themselves, maybe it would have more to do with the quantity of individuals, but I think that’s just not the case, they do want more.

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