innonimatu
the resident Cassandra
- Joined
- Dec 4, 2006
- Messages
- 15,374
This is exactly why the only way to achieve housing for all is to decommodify housing. Homeownership-as-investment and affordable housing are two fundamentally contradictory concepts.
It's sad that here where I live the social housing built by the former dictatorship government are selling for over half a million Europe a unit. The current government, despite being called "left-wing" (and was once considered dangerously so by the powers that be at Brussels) is not building new social housing. The damn fascist dictatorship had a better housing policy than the current governments we have!
This did not have to be so. For some 25 years, 1975-2000 lots of social housing was build by the state and the municipalities. It could be done, a much poorer country at the time was doing it and putting an end to the slums. But after most banking was privatized (after about 1995) houses became a financial asset for the banks and the owners to speculate with, and it was bad to increase the stock because what they owned wasn't going to rise in price as much. So the state's role in building new housing was suppressed.
The root of this evil here: privatization of the banks. Much as Thatcher did in the UK, the result was a society set against itself, greed as a conductor of politics. And now the whole world is hell bent on not just private finance, but on concentrating that finance! in the EU the ECB is deliberately bankrupting smaller banks and creating "european champions". Privately owned, of course...
The will be no solution to housing crisis, and to a number of other social crisis, become private finance is severely reduced in size and scope. We have the solutions: cooperative banks, public banks, building societies, making sure that there is real competition among what is private. What we don't have is the awareness of enough people to use their formal power with democracy to impose a social shift back to this. Because, in many countries, it requires no more than going back to an older, tested and proven, structure on how finance is organized.