Communism and Capitilism

[Logan M.]

Yesterday, I posted about how we can solve affordable housing in America.

I had over 80 responses and the conversation got very political, which was not entirely a surprise.

My question though is what economic model is better for affordable housing?

China for example is supposed to have enough apartments for the entire population and housing is becoming more and more affordable while that bubble bursts. 

In America, we own our real estate and have turned housing into an asset we invest in and make money on rents as well. I am not saying China doesn't as well but my point is that we have a major housing shortage and we don't have a free market that says build build build until supply and demand converge.

So when it comes to housing which approach is best?

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Quote from @Logan M.:

Yesterday, I posted about how we can solve affordable housing in America.

I had over 80 responses and the conversation got very political, which was not entirely a surprise.

My question though is what economic model is better for affordable housing?

China for example is supposed to have enough apartments for the entire population and housing is becoming more and more affordable while that bubble bursts. 

In America, we own our real estate and have turned housing into an asset we invest in and make money on rents as well. I am not saying China doesn't as well but my point is that we have a major housing shortage and we don't have a free market that says build build build until supply and demand converge.

So when it comes to housing which approach is best?

Affordable housing doesn't adequately describe what you want. I was in Moscow just after the fall of communism. Everybody that wanted a place to stay had one. The buildings were crumbling, elevators didn't work so we had to climb the stairs and the one I stayed in was for the elite scientists and engineers who were treated better than the average folks. The balconies were about to fall off the side of the building.

The joke was, "we pretend to work and they pretend to pay us". Housing was free so it didn't eat in the couple of hundreds dollars a month they were paid.

The nuclear physicist who guided us through the Kremlin said he made more money giving tours than being a rocket scientist. But, everybody has affordable housing.