Yes, I would see falling valuations as an additional solution rather than a problem. Paine’s proposal would absolutely affect housing prices, correcting their inflation rate to that of other goods (rather than being 5-10x higher). Housing would cease to be a threshold for runaway wealth accumulation (and inequality), and would become affordable for ordinary people.
I say this as a person who owns two houses, this is not technically in my individual interest right now, but it’s a fairer system. As you say, I’ll still be able to afford a haircut.
I agree measures would need to be taken to protect people who are over-leveraged, and would have to be implemented gradually so as not cause massive instability. Paine benefitted from the fact that his economy was only just beginning (well, at least amidst a revolution), while ours is in full swing.
Yes, I would see falling valuations as an additional solution rather than a problem. Paine’s proposal would absolutely affect housing prices, correcting their inflation rate to that of other goods (rather than being 5-10x higher). Housing would cease to be a threshold for runaway wealth accumulation (and inequality), and would become affordable for ordinary people.
I say this as a person who owns two houses, this is not technically in my individual interest right now, but it’s a fairer system. As you say, I’ll still be able to afford a haircut.
I agree measures would need to be taken to protect people who are over-leveraged, and would have to be implemented gradually so as not cause massive instability. Paine benefitted from the fact that his economy was only just beginning (well, at least amidst a revolution), while ours is in full swing.