Thursday, 17 February 2011

The False Dawn of Economic Growth

Everyone is full of doom and gloom about the economy, all you hear on the news is, we won’t be seeing any economic growth for some time to come. We hear the same old crap churned out, interest rates may need to rise, the housing market is falling, blar de blar de blar.

Why do houses have to rise in price? Why can’t they stay cheap? It is an essential part of life to expect a roof over your head, why should it be that some greedy people expect to increase the price of houses, so they can make more money. Why is it that a major part of the economy is based on the ridiculous concept of housing continuously rising? If you buy a property for say £100,000, and it rises to £200,000, and you sell it. The new house you buy is say £300,000 but that house was £200,000 when your first house was £100,000, why do people see this as some kind of gain? You hear all the time; sold my house and made a £100,000 on it, but you didn’t really since the house you bought had risen at the same level.

This loony concept, demanding everything has to grow, and the deluded concept of exponential growth is a fallacy, plain and simple. Yet all you ever here is doom and gloom because there is no growth in the markets or the economy.

When does it all end, when the average house price is £1,000,000? How do you buy a house that was £100,000 the year you bought it, then it’s sold for £200,000, then sold again for say £500,000, then again for £750,000 then again for £1,000,000. How do you purchase the house if in the same time period your monthly wage has hardly risen at all? When the house was £100,000 you earned, let’s be generous, £50,000, and when it’s sold you earned, £51,000, and the next sale you earn £55,000, and the next one £60,000, and finally when the house is sold for £1,000,000, you earn the massive total of say £70,000. Do you get the picture, yet this is what is happening and it has been happening for 15 years.

How do you cope with the massive debt you will need to plunge yourself and your family into, so you can live in a property you can afford? And that just one of the essential things you need to survive.

I wonder how long it will be before we see the same sorts of demonstrations we have seen in the Middle East and North Africa, are on the streets of westernised countries, people saying we have had enough of this shit.

Anyway it’s just a thought.

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