Loading ...Don’t be surprised if these low interest rates, and all those tax deductions supporting real estate are removed. The original reason for tax deductions was to help one middle class family man buy one house.
It was not intended to help real estate “hoarders” invest small down payments, combined with borrowed funds, to build up their net worth (like savings account) in the sector. Trump I hear and some of his group are for a gold standard.
If we had a stable value gold backed currency, that even gained value over time, nobody would have to be betting or assuming a currency would lose value over time and have to buy some THING that goes up inverse fake money losing value.
Inflation hedges or houses used as “money” creates excess demand, pushing up prices, making it harder for middle class to buy them. Thank God people are NOT hoarding and storing FOOD or CARS as money to protect the value of their excess income.
If Gold was used as money, and hoarding it drove the price gradually higher and higher over time, it would NOT hurt the public. Nobody eats it or lives in it. In fact, when the US Dollar was backed by gold, from 1800 to 1913, 113 years, prices actually fell slightly.
You didn’t have to ask for a pay raise, or get a new Sears catalog for 113 years. House loans were 50% down, with five year loans at about 2% I think. When somebody from a bank gave you a loan, you were scrutinized because….
They were HANDING you someone else’s GOLD, and very important you gave back what you borrowed.
Leasing cars is another gimmick. Tax deduction for businesses, and support for retail sales. In a sense we do have car “land lords” hoarding cars, and all the little people who can’t afford to buy a new car are induced or seduced, into leasing a new car.
They make payments for three years or more, and after that, have to RETURN it in good condition with low mileage, and resell or re-lease it to another victim. Years ago it was a big deal when someone bought a new car. It was kept for 10 years or more.
Entry level income, right out of high school, in the 1960s, a new car was $1800 to $3800 and a three year loan.