NetNews Usenet Archive 1993 #3/NN_1993_3.iso/spool/can/politics/11691

Internet Message Format | 1993-01-25 | 1.8 KB

Xref: sparky can.politics:11691 soc.culture.canada:10360
Newsgroups: can.politics,soc.culture.canada
Path: sparky!uunet!utcsri!helios.physics.utoronto.ca!alchemy.chem.utoronto.ca!golchowy
From: [e-mail] (Gerald Olchowy)
Subject: Re: Deficit, Deficit, who's got the Deficit? was: NDP "communism?"
Message-ID: <[e-mail]>
Organization: University of Toronto Chemistry Department
References: <jstewart.727977919@cunews> <[e-mail]> <jstewart.727989524@cunews>
Date: Mon, 25 Jan 1993 20:11:21 GMT
Lines: 27

In article <jstewart.727989524@cunews> [e-mail] (John Stewart) writes:
>
>House prices have dropped in some areas, most notably Toronto, and prices
>are stagnant just about everywhere else in Ontario.
>
>This is just another example of the decrease in wealth in Ontario.
>When houses appreciated in value at a rate well beyond the rate of
>inflation people at least had the satisfaction of knowing that
>they were increasing their wealth even if their entire income was
>being spent on basic necessities and taxes.  Now that prices are
>stagnant (and likely to remain so for many years), a house can no longer
>be viewed as an investment.
>
>We ddidn't get into the house market until it was near its peak.  I wish
>I had been born 10 years earlier! :-)

Housing supply caught up with housing demand...the speculative and
inflationary real estate boom was not healthy for our economy and
it is one of the reasons why the recession was so painful and the
recovery is so slow.  Bubble economies aren't sustainable...they
eventually come to a deflationary crash.

Stable real estate prices, and stable prices in general are good
for economic growth...wealth then is mostly earned, and shelter
is plentiful and affordable.

Gerald