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It doesn't matter, since both Hong Kong and Taiwan left China eating dust economically.
People's ignorance of economics is truly astounding.
Um, the reason property values rise, is because the property becomes desirable, that is to say it's a function of Supply & Demand.
You can still buy land in many areas of the US for just $99/acre.
Why is it $99/acre? Because it's undesirable and nobody wants it. There's no services: no running water, no electricity, no natural gas and no sewage lines.
You'd have to connect to a water main, and I don't know what the rate is there, but here it's $115/foot.
If you're building a house and you have to run the water line 60' it will cost $6,900, but out there, the nearest water main is probably several miles away.
You might be able to dig a well, if the geology and hydrology supports it.
You can assign any dollar value you want to your property, but if other people aren't willing to pay that much, then it really doesn't have that value.
My friend's land was valued at $200/acre, because it was surrounded by other farms. Those farms have since sold, and there's several sub-divisions and a retail center there.
Now, other people are willing to pay $28,600/acre for land that was originally $200/acre, because it's very desirable.
Some property actually decreases in value over time, because nobody wants it.
You can claim your home is worth $500,000 but if other people are only willing to pay $250,000, then you'll never sell it for $500,000.
Stocks are no different. They have value only because other people place value on them.
At one time Chiquita's stocks sold for $0.03/share, because other people placed no value on them.
You are free to claim that your Chiquita stock was worth $15/share, but if other people are only willing to pay $0.03/share, then you're not going to get $15/share.
For the overwhelming vast majority of people it requires smart work, either through risk, ingenuity, creativity or organization and planning.
You're just insanely jealous, because you don't have what it takes.
may I add a little bit of luck and timing also helps.
Speculation on property value is an affect of the free market, not the state.
So is marketing, and market share, both tools to influence demand. In fact withholding supply from the market is another tool financiers use to affect market value.
The government may be involved, but these actions are generally made by private institutions without government authority.
So if I buy a gallon of milk or a house, I am now manipulating supply and demand?
Capital bought with the intent of distorting value for your own benefit is the exact definition of manipulating supply and demand.
If real estate companies hold property off the market to rise value, that is manipulation. If I buy property to speculate on its potential value or store wealth, that is manipulation.
Supply and demand is suppose to mean something people want/need forms demand, and supply fulfills it.
If people buy property not because they want or need it, but because they want to raise market value, profit off of increased demand, or re-sell it, that is by definition manipulating the market.
Capital bought with the intent of distorting value for your own benefit is the exact definition of manipulating supply and demand.
If real estate companies hold property off the market to rise value, that is manipulation. If I buy property to speculate on its potential value or store wealth, that is manipulation.
Supply and demand is suppose to mean something people want/need forms demand, and supply fulfills it.
If people buy property not because they want or need it, but because they want to raise market value, profit off of increased demand, or re-sell it, that is by definition manipulating the market.
This explanation is too complicated for him. He is slow [this are his own words].
People who thinks like him see the economy as some sort of god-given laws; they are nothing but arbitrary measures to tilt the field in favor of some to accumulated wealth at the cost of working people and the population in general. People who fancy they understand the economy show their narrow mindedness when they talk about supply and demand.
Supply: real state dealers provide houses and property.
Demand: national and foreign people want to buy houses.
The higher the demand the higher the prices, right? It's not that simple. You could see things in quite a different way when greed, not needs is the principle motive.
Supply: rich people who don't have anything better to do with their money and want to "invest".
Demand: real state dealers want to increase profits [the demand of money is higher]
In other areas of the economy this supply/demand exchange take yet other forms. We (I mean people in general) are far from getting a right understanding of correct prices and wages.
Capital bought with the intent of distorting value for your own benefit is the exact definition of manipulating supply and demand.
If real estate companies hold property off the market to rise value, that is manipulation. If I buy property to speculate on its potential value or store wealth, that is manipulation.
Supply and demand is suppose to mean something people want/need forms demand, and supply fulfills it.
If people buy property not because they want or need it, but because they want to raise market value, profit off of increased demand, or re-sell it, that is by definition manipulating the market.
Duh, that’s basically how every business functions!
This explanation is too complicated for him. He is slow [this are his own words].
People who thinks like him see the economy as some sort of god-given laws; they are nothing but arbitrary measures to tilt the field in favor of some to accumulated wealth at the cost of working people and the population in general. People who fancy they understand the economy show their narrow mindedness when they talk about supply and demand.
Supply: real state dealers provide houses and property.
Demand: national and foreign people want to buy houses.
The higher the demand the higher the prices, right? It's not that simple. You could see things in quite a different way when greed, not needs is the principle motive.
Supply: rich people who don't have anything better to do with their money and want to "invest".
Demand: real state dealers want to increase profits [the demand of money is higher]
In other areas of the economy this supply/demand exchange take yet other forms. We (I mean people in general) are far from getting a right understanding of correct prices and wages.
Name one thing that is afforded to you not by greed.
Think like me? I advocate freedom from governmental or individual control.
To look at this news as one of 'income inequality' doesn't really explain the reality of the situation.
I think most people are missing the obvious point that these billionaires have developed or contributed technology or products that have added to and improved all our lives.
A look at some of the richest are Jeff Bezos, who has transformed commerce and Bill Gates who has obviously helped to transform and ease our lives in numerous ways.
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