The baked beans school of housing economics
- rpwills
- 3 days ago
- 3 min read
There are various commentators, politicians and lobbyists who follow the baked beans school of housing economics. In essence they believe that houses are like baked beans. If there are insufficient houses or you want prices to fall then you supply more. That’s what happens with baked beans so it’s the same for houses.
Followers of this school are oblivious to some rather critical differences between houses and baked beans. Lets examine them.
People do not:
1 Buy baked beans for uses other than eating.
2 Use baked beans as assets on the basis that their value will rise over time.
3 Low interest rates do not encourage people to shift money from bank deposits into buying baked beans.
4 Quantitative easing has never impacted on baked beans prices.
5 Banks do not lend money out so that people can borrow to buying baked beans in the process bidding up prices.
6 Foreign investors do not purchase baked beans to store their funds in.
7 Investors do not buy baked beans on a buy to let basis.
A brief outline of why there is a housing crisis is set out below. For full details access:
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