Sunday, January 25, 2009

DANG (6) - Housing

Many governments now provide housing for the poor. There are two problems with the state taking this role.

  1. There is no shortage of people wanting to invest in housing, whereas the state is always short of capital. Instead of wasting its capital on housing, the state should leaving house to the many people who want to invest in housing.
  2. There is a problem of what to do when the recipients of state housing no longer need help. If they are allowed to continue to live on in ther state-owned residences, most state housing will be wasted on people who no longer need it. If they are forced out into private housing, they will be given an economic shock, just as they are getting back onto their feet.
It is always better to help people in privately owned housing as they can then stay on as long as they choose.

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