Polly Today

Quite glorious.

To get the housing market going again, the government needs to stand as insurer for new mortgages. Cheap land and a near-idle construction industry needs a massive government programme to insulate old homes and build, build, build to keep people in work, hire apprentices and help the housing market.

In a land of falling house prices, building more houses will support the market for houses.

It\’s as if that intersection of supply and demand doesn\’t exist in PollyWorld.

6 thoughts on “Polly Today”

  1. Well I think it has the makings of a good idea- though Polly’s reasoning escapes me. Houses are a commodity, not an investment. The cheaper they are the more money will be available for investment, and the more people will have the houses they desire. at the moment the price is restrained by the availability of credit (or lack of it), and boosted by rarity value. More houses (flats etc.) will bring the price down, andmake everyone better off. Of course this would entail allowing housebuilding on a lot of land currently restricted for other use by planning regulations.
    BTW as a householder myself I see a personal loss should this come to pass.

  2. “More houses (flats etc.) will bring the price down, andmake everyone better off.”

    Gosh. You mean that if people who owned property (esp. land) could do what they wanted with it then everyone would be better off? What a revolutionary (c. 18th century) idea.

  3. “Cheap land and a near-idle construction industry needs a massive government programme to insulate old homes ”

    Why does cheap land ‘need’ a massive government programme to insulate old homes? And even if it does need that, how does Polly know? How does land (cheap or dear) communicate its needs so that we can cater for them? And why any way should human society organise its government to the benefit of the needs of land?

  4. BlacquesJacquesShellacqes

    Who says we need more homes? The government does and accordingly I assume the statement is false, either intentionally or through the usual incompetence.

    The only measure of ‘need’ is the market. If you won’t trade for it, you don’t need it. Maybe you want it but that is no basis for state intervention.

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