We are very happy to observe increase in
House Prices when we are an house owner (debt free).
Article, Most
‘Wealth’ Isn’t the Result of Hard Work. It Has Been Accumulated by Being Idle
and Unproductive, by Laurie Macfarlane stated an interesting note on increase
in house prices:
"When the value
of a house goes up, the total productive capacity of the economy is unchanged
because nothing new has been produced: it merely constitutes an increase in the
value of the land underneath. We have known since the days of Adam Smith and
David Ricardo that land is not a source of wealth but of economic rent — a
means of extracting wealth from others. Or as Joseph Stiglitz puts
it “getting a larger share of the pie rather than increasing the size of
the pie”. The truth is that much of the wealth accumulated in recent decades
has been gained at the expense of those who will see more of their incomes
eaten up by higher rents and larger mortgage payments. This wealth hasn’t been
‘created’ – it has been stolen from future generations."
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