ACCUMULATING PERIPHERALS


My plan to solve the housing demand crisis by mattsteinglass
August 24, 2010, 11:21 pm
Filed under: Economics

Here’s an example of a post I can’t write for the Economist, because it’s crazy and stupid. So here goes: my plan to solve the housing demand crisis.

1. Use high demand for US Treasury bonds to build up collateral to issue free government insurance on US housing stock, including natural disasters, war, etc.

2. Use the United States Air Force to destroy the excess supply of existing homes. Select homes to be bombed at random. With supply at just over 12 months and sales of 4 million per month, bombing 25 million homes should be sufficient to bring supply down to a historical average of 5 or 6 months.

3. Pay out insurance to homeowners, and watch the housing industry (and home values) recover as they use the cash to buy homes.

For many reasons, this plan doesn’t actually make any sense, but at some level I still find it amazing that the key statistic showing that our economy is in serious trouble is that we just have too many great big suburban American houses. Most people in rural Vietnam would still have trouble figuring out how a surplus of great big suburban American houses is a problem.

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1 Comment so far
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That plan would work, you know.

There was a clip, of a guy in WWII, coming out of a factory in California. He held up his paycheck, and said “God bless Adolf Hitler!” I’m quoting from memory, but something along those lines.

We built 100,000 bombers, battleships, boats, planes, tanks, guns, sent them over there…and blew them up. Your plan would work, it’s not crazy at all.

As more and more of our “production” is accomplished by machines, human labor is no longer needed. I think that is the source of the problem. Wanton destruction, to create economic activity, would be one way to deal with it.

Comment by Xiaoding




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