Socialism is bad except when it helps ME!
I peruse these fora from time to time - very entertaining. I'm from the GTA originally but now live out of the country.
The latest theme here seems to be that rent control, FBT, and other measures are BAD because they are SOCIALISM.
It's interesting that the RE perma-bulls don't seem to mind socialism when it benefits them :
1) CMHC : why is the government backstopping the banks' mortgage bets? This is the most egregious example of socialism in the Canadian housing market. Let the banks shoulder the burden of the loans they make to prospective home buyers.
2) Capital gains exemption : why is the government exempting one type of investment but not others? It's a sort of asymmetrical socialism. Either exempt all or none (or allow a maximum lifetime exemption on profit derived from many investment types, including stock/bond sales).
3) Greenbelt : I don't have a problem with preserving natural areas, but it's still quite socialist to block a massive swath of land to development, further constraining supply
4) Lack of transparency for buyers : with the realtor monopoly on sold data (recently struck down in court, now being appealed by the RE industry), buyers are at a disadvantage; boost the "free" in free market by allowing easy and free distribution of data on price history, list price (including subsequent revisions), and sold price, rather than having to go through a RE gatekeeper to access it. I guess this isn't strictly socialism but it does have the effect of protecting realtors and sellers.
5) Historically low interest rates : pretty clear that the only reason the BoC won't raise rates, even while the US is raising, is to save indebted homeowners from their own irresponsibility. Why is a Crown corporation (for that is what the BoC is) saving profligate citizens from their own poor decisions? That's socialism!
6) Massive immigration : Canada has the highest per capita legal immigration intake in the Western world. For comparison, it is 3 times higher than the US intake per capita. Many consequences of this government-mandated influx, including higher RE prices in Toronto/Vancouver.
Can anyone think of other examples of socialism for home owners? Let's compile a long list.
The latest theme here seems to be that rent control, FBT, and other measures are BAD because they are SOCIALISM.
It's interesting that the RE perma-bulls don't seem to mind socialism when it benefits them :
1) CMHC : why is the government backstopping the banks' mortgage bets? This is the most egregious example of socialism in the Canadian housing market. Let the banks shoulder the burden of the loans they make to prospective home buyers.
2) Capital gains exemption : why is the government exempting one type of investment but not others? It's a sort of asymmetrical socialism. Either exempt all or none (or allow a maximum lifetime exemption on profit derived from many investment types, including stock/bond sales).
3) Greenbelt : I don't have a problem with preserving natural areas, but it's still quite socialist to block a massive swath of land to development, further constraining supply
4) Lack of transparency for buyers : with the realtor monopoly on sold data (recently struck down in court, now being appealed by the RE industry), buyers are at a disadvantage; boost the "free" in free market by allowing easy and free distribution of data on price history, list price (including subsequent revisions), and sold price, rather than having to go through a RE gatekeeper to access it. I guess this isn't strictly socialism but it does have the effect of protecting realtors and sellers.
5) Historically low interest rates : pretty clear that the only reason the BoC won't raise rates, even while the US is raising, is to save indebted homeowners from their own irresponsibility. Why is a Crown corporation (for that is what the BoC is) saving profligate citizens from their own poor decisions? That's socialism!
6) Massive immigration : Canada has the highest per capita legal immigration intake in the Western world. For comparison, it is 3 times higher than the US intake per capita. Many consequences of this government-mandated influx, including higher RE prices in Toronto/Vancouver.
Can anyone think of other examples of socialism for home owners? Let's compile a long list.