Housing Crisis, System Failure
Saturday 21 August 2010
by: Rick Wolff | MRzine | Op-Ed
http://www.truth-out.org/housing-crisis-a-symptom-capitalisms-failure62507"The US housing industry's basic problem is the system in which it is embedded. The larger capitalist economy shapes the gap between the costs of privately produced homes and American workers' earnings. Over the last 75 years, US capitalism has bridged that gap by means of private credit guaranteed and/or subsidized by the government. This system provides incentives as well as opportunities for excessive home prices, diminished wages and salaries, and excessive quantities, risks, and costs of housing credit. The last 30 years have seen all three phenomena converge into a systemic crisis."
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