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Yes, this is the free market. Yes, raise the rent to what the consumer will pay. Next thing you know, only the wealthy will keep paying. As long as vacancies are low, even if it's because the wealthy are the only ones paying those rates, everyone is happy............except for the middle/lower class who can no longer afford shelter, and BOOM, an explosion in homelessness. It's simple; the more living costs go up, the higher the homeless rate will be. If inflation doubles in 10 years but salaries only rise 20%, what do you think will happen?
I'm not against a free market, believe me, I'm invested in it. However, we have a problem to solve, here.
And obviously, the way to solve the problem is to have the government be more involved. Instill eviction moratoriums, send stimulus payments to low & middle class individuals, make the wealthy pay more in taxes, forgive large amounts of student debt, give away enormous child tax credits, create more programs for needy families, pass affordable health care acts, educate all the children for free. Oh, wait. We've tried all of these plus many other programs, and look where we are now. Inflation is largely the result of the government's huge spending spree to supposedly solve our problems.
And obviously, the way to solve the problem is to have the government be more involved. Instill eviction moratoriums, send stimulus payments to low & middle class individuals, make the wealthy pay more in taxes, forgive large amounts of student debt, give away enormous child tax credits, create more programs for needy families, pass affordable health care acts, educate all the children for free. Oh, wait. We've tried all of these plus many other programs, and look where we are now. Inflation is largely the result of the government's huge spending spree to supposedly solve our problems.
The rich keep getting richer and the poor keep getting poorer. The middle class is disappearing. What will this country look like 100 years from now when minimum wage is $300/hr but rents are $200,000/month.
I used to think this wealth disparity couldn't go on, but here we are. It is getting worse but how far can it go? Are we really going to see a country where .01% of the population owns 99% of the wealth? That's the direction we're headed. I'm all for American free enterprise, and I do believe the wealthy deserve what they have. Do they have too much? How do we keep the income disparity from getting worse? I have some ideas but most citizens of this country wouldn't go for it.
The rich keep getting richer and the poor keep getting poorer. The middle class is disappearing. What will this country look like 100 years from now when minimum wage is $300/hr but rents are $200,000/month.
I used to think this wealth disparity couldn't go on, but here we are. It is getting worse but how far can it go? Are we really going to see a country where .01% of the population owns 99% of the wealth? That's the direction we're headed. I'm all for American free enterprise, and I do believe the wealthy deserve what they have. Do they have too much? How do we keep the income disparity from getting worse? I have some ideas but most citizens of this country wouldn't go for it.
mborner. You are correct ^^!
Quote:
Originally Posted by Valley Native
And obviously, the way to solve the problem is to have the government be more involved.
@VN, the government HAS gotten involved in helping create this disparity. Policies like dozens of ways to avoid estate taxes, tax write-offs for business owners that can be easily manipulated, expanded capital gains advantages, loopholes that are not plugged allowing people and companies to game the system, etc. And once someone has money, it's a lot easier to have your lineage keep it. Wealth also offers your offspring a strong competitive advantage in life.
As I have typed in other posts, my business caters to the top 1-2%. With many customers, they didn't do it the old-fashioned way, rather, they inherited it. This thread is about how people can afford expensive PHX housing. How do some people do it??? This way https://themreport.com/news/data/10-...ng%20the%20way. "Saving for a down payment can take years — but receiving help from the bank of Mom and Dad can speed up that process. 39% of homeowners have received down payment assistance, with help from parents leading the way." Our son is still in his ER residency and the same with his wife. Her wealthy parents will gift a large down payment like their other kids received. Buying a $1.5M starter home in the Bay area is spendy. Even for (future) $700K in income. So the rich get richer.
I'm speaking from experience. Since I own my own business, I can write off so much more than others. You have no idea on how much I can dodge taxes in comparison to a W2 employee. The laws were written by people with money for people with money. Anyone who says differently, doesn't understand how the system works.
Quote:
Originally Posted by Valley Native
Instill eviction moratoriums, send stimulus payments to low & middle class individuals, make the wealthy pay more in taxes, forgive large amounts of student debt, give away enormous child tax credits, create more programs for needy families, pass affordable health care acts, educate all the children for free. Oh, wait. We've tried all of these plus many other programs, and look where we are now. Inflation is largely the result of the government's huge spending spree to supposedly solve our problems.
All true ^^. 1000% fact! Giving away free money without mandating performance when you get the $$'s is the problem. Giveaways largely don't work because there are no measured expectations! You get $x, then, if you F'up, then you starve.
And yes, working your butt off from nothing to something can be done. I can personally attest to this concept. And it happens all around us. Statistically speaking, wealth breeds wealth. As mborner stated, the income gap is problematic. It's a major concern. But the Dems solution as you pointed out is too "compassionate." There is no balance.
The rich keep getting richer and the poor keep getting poorer. The middle class is disappearing. What will this country look like 100 years from now when minimum wage is $300/hr but rents are $200,000/month.
I used to think this wealth disparity couldn't go on, but here we are. It is getting worse but how far can it go? Are we really going to see a country where .01% of the population owns 99% of the wealth? That's the direction we're headed. I'm all for American free enterprise, and I do believe the wealthy deserve what they have. Do they have too much? How do we keep the income disparity from getting worse? I have some ideas but most citizens of this country wouldn't go for it.
Free government money and programs is not the answer. The death of the middle class started when business owners decided to offshore everything. The only thing left is zero skill, low paying jobs and very skilled high paying jobs.
The only type of government interference I would welcome would be a mandate that companies need to maintain at least 70% of their manufacturing on American soil. Bring back manufacturing and you will bring back the middle class.
All the last 4 post are so true. But what is the solution? Do we vote for politicians that will work in the best interest of the middle class and for Americans/ I would not hold my breath!!! Just look at the mess in the White House.
All the last 4 post are so true. But what is the solution? Do we vote for politicians that will work in the best interest of the middle class and for Americans/ I would not hold my breath!!! Just look at the mess in the White House.
I think if there were a solution we would have implemented it by now. How about the richest 10% of Americans pay 100% of federal taxes. The remaining 90% pay no federal taxes. This still wouldn't fix the problem. Worse, we'd be labeled a socialist society, which we are not. How about the government investing social security tax income into the stock market. Since SS is a long term play, imagine the growth of the SS trust fund at an average annual return of 8% over the past almost 90 years. That alone would have solved this countries retirement crisis. This also would wipe out almost the largest part of income disparity, this nations senors living in retirement. How about mandatory advanced personal finance and economics throughout high school and above. I personally believe personal finance should start in first grade. Let's face it, a large part of the income gap comes from consumers that just don't know how to manage money.
As I said in another thread elsewhere on this board: Do you want to know how to spot broke people?
Easy, they look like they have money.
And obviously, the way to solve the problem is to have the government be more involved. Instill eviction moratoriums, send stimulus payments to low & middle class individuals, make the wealthy pay more in taxes, forgive large amounts of student debt, give away enormous child tax credits, create more programs for needy families, pass affordable health care acts, educate all the children for free. Oh, wait. We've tried all of these plus many other programs, and look where we are now. Inflation is largely the result of the government's huge spending spree to supposedly solve our problems.
Why one side finds this so hard to understand is beyond me. But they blame inflation on everything BUT spending. Just like most households have a BUDGET, the US needs to get on one and fast.
I think if there were a solution we would have implemented it by now. How about the richest 10% of Americans pay 100% of federal taxes. The remaining 90% pay no federal taxes. This still wouldn't fix the problem. Worse, we'd be labeled a socialist society, which we are not. How about the government investing social security tax income into the stock market. Since SS is a long term play, imagine the growth of the SS trust fund at an average annual return of 8% over the past almost 90 years. That alone would have solved this countries retirement crisis. This also would wipe out almost the largest part of income disparity, this nations senors living in retirement. How about mandatory advanced personal finance and economics throughout high school and above. I personally believe personal finance should start in first grade. Let's face it, a large part of the income gap comes from consumers that just don't know how to manage money.
As I said in another thread elsewhere on this board: Do you want to know how to spot broke people?
Easy, they look like they have money.
Your post points to one of the biggest problems of all: people keep looking to the government to solve the situation they created (SS, IRS, DOE, etc). What ever comes from them will suck just as bad or worse.
You are correct that personal finance/responsibility is key (you DO NOT need a government teacher to explain it to you), but it's not a crash diet type of thing. It's something you learn and practice your whole life.
And as it gets expensive, more sprawl, for one thing.
Why It’s So Expensive to Live in Phoenix
Since 2010, the number of rental properties available for $1,000 or less in greater Phoenix has declined 86%, according to the Maricopa Association of Governments, a regional planning agency. The number of homes selling for $300,000 or less dropped 73%.
Those sorts of properties “used to be the majority of our market,” said Amy St. Peter, the agency’s deputy executive director. “They are virtually nonexistent now.”
I agree with the poster that stated that this is far from just a Phoenix phenomenon.
1. A basic inflation calculator will tell you that $1,000 in 2010 is the same as $1,432 today.
2. " " " " " " " " $300,000 in 2010 is the same as $429,704 today.
3. I do not meet that many people and even I met a business women in 2010 who was headed to Phoenix to buy houses at auction and she planned to buy 20 homes at about $50k-$60k and rent them out. If I met someone like that how many thousands of business people did that (and may still be holding those assets and renting them)?
4. The Fed kept interest rates at extremely low levels for a decade and a half which has distorted asset prices to the up side and so housing prices are also inflated.
5. According to Redfin, 22.6% of US homeowners have a mortgage rate below 3%. 78.7% of homeowners have a mortgage rate below 5%, and 59.4% have a mortgage below 4%
- Homeowner's are not motivated to move houses and have high interest rates on mortgages.
- Many homeowner's would far surpass their capital gains exemption amount if they were to sell their homes (adding to the cost of making a move). The exemption amount for primary residence has not been inflation adjusted to 1998ish when it was put into law.
6. The article alluded to Spec houses. When I bought my house in 2002 I bought it six months before it was built. By the time I moved in I had equity. Builders do not let the homeowners keep earn that equity now. They release new houses slowly and optimize their sales price and keep their inventories low so they don't get caught with their pants down like the did in the GFC.
There are probably a million other reasons. One issue is why do 32 year olds want to hang onto their high school part-time jobs for life? Why don't they join the military or go to community college or find some other training programs like we did in my generation when we were not born with a silver spoon?
I looked up a rental my ex and I rented in 1982 in the military for about $300 a month in Marina, California. The same apartment complex the rents are $3,500 to $5,000 a month. The condo we bought in Dublin, CA in 1991 for $180k now goes for $895k. So, you think Phoenix is bad, there are places with worse problems. That should also explain why you get the influx of Californian's (or at least people whose last residence was California).
I think that Phoenix is so expensive because of its popularity especially among Californians and midwesterners as well as in the PNW.
Also its location in the west it sits among its peers in Denver, Salt Lake City, Vegas and California which are all very expensive places. IT is a beautiful outdoorsy place that has a lot of natural features. Phoenix has a lot of sunshine and very mild winters.
Also it has a lot of good paying jobs and is a hot spot for Caucasian Baby Boomers and Gen Xers who have
good amounts of money especially the East Valley.
Overall I believe that Phoenix is priced fairly especially when you consider that it is much cheaper than California, Denver and Salt Lake.
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Policies like dozens of ways to avoid estate taxes, tax write-offs for business owners that can be easily manipulated, expanded capital gains advantages, loopholes that are not plugged allowing people and companies to game the system, etc. And once someone has money, it's a lot easier to have your lineage keep it. Wealth also offers your offspring a strong competitive advantage in life.
The laws were written by people with money for people with money. Anyone who says differently, doesn't understand how the system works.
Giving away free money without mandating performance when you get the $$'s is the problem. Giveaways largely don't work because there are no measured expectations!
You get $x, then, if you F'up, then you starve. 
Phoenix cost of living
