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Milton J. Madison - An American Refugee Now Living in China, Where Liberty is Ascending

Federalism, Free Markets and the Liberty To Let One's Mind Wander. I Am Very Worried About the Fate of Liberty in the USA, Where Government is Taking people's Lives ____________________________________________________________________________________________ "Extremism in defense of liberty is no vice. Tolerance in the face of tyranny is no virtue." -Barry Goldwater-

Tuesday, March 06, 2012

Robert Shiller on Why Home Prices Could Fall for Several Decades

Robert Shiller says that housing prices declined in real terms (adjusted to inflation) for the first half of the 20th century due to changes in technological capabilities. No one knows which new technologies will change the price of new home from both materials and manufacturing standpoints and what new technologies will be offered as a new home. This may create a situation where old homes become less valuable.

Additionally, through incompetent central government planning (also known as socialism) government has created an environment where housing is much more expensive than it would be in a truly free market. This will continue to provide a headwind to the business of building new houses as prices still have not reached market clearing levels. Additionally, central government meddling into these markets will most truly delay new technologies methods and processes that will make the creation of housing for people more efficient and advanced.

Robert Shiller on Why Home Prices Could Fall for Several Decades

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