The US economy is doing well. President Biden wants to know why so many Americans are still feeling bad
The US economy is doing well. President Biden wants to know why so many Americans are still feeling bad
By many metrics, the US economy is humming along. The jobs market is robust; consumers are spending again; and inflation has eased to a three-year low.
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I'm not doubting the statistics show that.
But people's stomachs are still rumbling, and they're not going to be silenced by statistics.
No, but the only way to silence them is to do more of what Biden has already done.
Allow the housing interest rate to more than double? I don't need any more of that thanks.
You don't need a mortgage to silence a rumbling stomach.
You still need a place to live. Tell me, what happens when the cost of buying property goes up, if you're a renter? Where does the extra money you have go spend on housing come from?
I guess I wouldn't care as much if I were a rich politician either.
Tell me, what happens when the cost of buying property goes up, if you're a renter?
Depends on supply and demand for rentals. Right now, supply is up and rents are going down. In which case, if costs are up then landlords eat the loss.
Yes, that $40 off a month is doing a lot to make up for the explosive increases we've seen. And I'm sure that spike in interest rates will have no long lasting effects.
Landlords do not eat the cost, nor do they often lower rent if they can get away with charging the same or more. "Due to lower expenses on our side, we are dropping rent by 5%" said very few landlords ever, except in fantasy land.
Biden do be out of touch.
Landlords reduce the rent on vacant units when they have too many of them. Just like hotel owners
And those prices do not go below the cost to run those properties, which has gone up significantly. But of course, it's easy to ignore the millions of people struggling if your goal is to put a shine on a rich politician with no real insight into thier struggles.
Revenues can certainly be lower than the costs to operate a property. That just means the business is operating at a loss, which is in fact happening to plenty of rentals as well as hotels.