Earlier quoted context omitted.
The way I usually phrase the problem here is that the market strives to push average disposable income to zero. Average here means that there will be people with various degree of spending money surplus (the rich) and those not able to afford even the essentials (the poor). This is a stable(ish) state, even as people move up and down the wealth ladder. However, when suddenly a large chunk of population gets extra dis…
> However, when suddenly a large chunk of population gets extra disposable income - say a hypothetical UBI experiment (or not so hypothetical universal or near-universal social handouts), or as two-income household model gains popularity in a country, or (indirectly) some innovation creates a new, widely-applicable efficiency - then the market absolutely swoops in and eats all the average surplus. My argument is that…
It happens basically everywhere, even when the rules are different. If I understand correctly, the primary limit in the UK is there's not enough builders, which is not to say the government isn't in the way as that's despite it also having constant planning issues with regard to the "green belt"; likewise in modern Germany, my understanding is not enough builders (and again yes the government could be better because bureaucracy is very slow, but they're not the limiting factor); likewise DDR (not even trying to be a free market) where the government was organising the construction work and trying to do it cheap and fast but there still wasn't enough.