The latest video from Positive Money, who to my delight (and surprise) are successfully changing the debate about where money comes from in our economy. This video looks at the matter of rising house prices, which are almost universally considered to be a good thing. This is despite the rather obvious fact that if house prices continue to rise faster than wages, eventually nobody will be able to afford a house and the market will collapse.
Why do we allow that to happen? Because a dynamic housing market is good for economic growth today, if not tomorrow. How does it happen? That’s in the video: