Monday, October 3, 2016

When George tax should have been injected into peoples china

"The large jump in the household saving rate from 2000 to 2010 is largely related to development in China’s housing market during this period. Before 1998, most Chinese families lived in government-provided houses; after economic reforms in 1998 removed this benefit, however, most Chinese families needed to buy their own homes. This change triggered rapid growth in the Chinese real estate sector, causing home prices to rise tremendously. Furthermore, as house prices started to increase quickly, housing became a popular investment for wealthy Chinese households, raising demand even further and exacerbating house price increases. Indeed, from 2000 to 2010, house prices
in China increased by about 161 percent. In addition to rapidly increasing prices, Chinese homebuyers faced large required down payments—typically 30–40 percent, but in some major cities as high as 50 percent. As a result, middle-class Chinese households were forced to save a disproportionately large share of their earnings to purchase a home. The saving didn’t end with the purchase of a home—the subsequent mortgage payments constituted additional saving as they increased the homeowners’ housing equity. As Rosenzweig and Zhang argue, this housing market dynamic helps explain the rising saving rate associated with rising housing prices from 1998 to 2010

The appreciation in lot values need to be suppressed with rising ground rent taxation

Yes the lot scarcity based huge population influx drivers caused a boom  that really adds nothing
Real To the economy

The state should have taxed it all away