Wednesday, July 31, 2013

Osborne - a misguided approach

"I'm determined to back people who want to do their best for their families. Help to Buy is about getting behind those who aspire to own a home." - George Osborne

A few questions:

  • Why is the government backing people who want to buy a house? I want to buy a bigger car, a new computer, a camera, a telescope, a microscope and a stethoscope, and I also want to do a butler to tend to my whims. For some reason, the government keeps drilling home the idea that owning a house is a fundamental right. There are alternatives to owning. There are also much better places to spend our taxes.
  • Also, why is the government supporting buyers by providing cheap finance? Isn't that what got us into this mess? What about the future generations who will be priced out of the market. The government isn't "getting behind" them at all, quite the opposite. It's an easy political manoeuvre because for the most part these future people aren't yet around to protest. 
  • Wouldn't lower prices be a better mechanism to support current and future generations? Focus on planning restrictions and the like, instead of stoking demand.
  • Maybe Osborne doesn't understand basic economics? If only he were so naive. It's calculated and that just makes it worse.

1 comment:

Christopher said...

Nonsensical! Perhaps Osborne should offer loans for people to buy buy-to-let properties in Dubai. That would also work out well.