Rising rates is actually the typical NIMBYs worst nightmare.
Around 1/3rd of all Americans are over the age of 55 [0], and of those Americans around 75% of them own property [1]. They vote consistently, and tend to favor short term policies which aim for boosted asset prices (as they near retirement) [2] and support for medicare (same reason).
The median baby boomer has ~200k in savings [3], so of course housing value has been collectively used as an investment to shore up their futures thru NIMBY political action. Since the boomers had relatively few children they need to rely on other people's children to maintain their lifestyles - i.e. have enough money to pay people.
Unfortunately the demographic reversal we are experiencing means there will be ever more money chasing fewer people and barring some major productivity gain they will suffer regardless.
As the fed continues to raise rates due to rising costs cause by the above, expect to see desperate people vote in politicians willing to abandon the independent fed and drop rates to 0 so they can maintain their lifestyles. They will also desperately avoid medicare for all style health changes to avoid losing out on the health dollars aimed only at them, extracted mostly by working Americans.
From each according to their ability, and to each according to their need after all!
Around 1/3rd of all Americans are over the age of 55 [0], and of those Americans around 75% of them own property [1]. They vote consistently, and tend to favor short term policies which aim for boosted asset prices (as they near retirement) [2] and support for medicare (same reason).
The median baby boomer has ~200k in savings [3], so of course housing value has been collectively used as an investment to shore up their futures thru NIMBY political action. Since the boomers had relatively few children they need to rely on other people's children to maintain their lifestyles - i.e. have enough money to pay people.
Unfortunately the demographic reversal we are experiencing means there will be ever more money chasing fewer people and barring some major productivity gain they will suffer regardless.
As the fed continues to raise rates due to rising costs cause by the above, expect to see desperate people vote in politicians willing to abandon the independent fed and drop rates to 0 so they can maintain their lifestyles. They will also desperately avoid medicare for all style health changes to avoid losing out on the health dollars aimed only at them, extracted mostly by working Americans.
From each according to their ability, and to each according to their need after all!
[0] https://www.populationpyramid.net/united-states-of-america/2...
[1] https://ipropertymanagement.com/research/homeownership-rate-...
[2] https://www.wsj.com/articles/trump-says-fed-should-reduce-ra...
[3] https://www.fool.com/retirement/2021/08/24/heres-baby-boomer...