We have reached the point where the state throwing money at problems doesn't fix the problems because the state takes the money away again on the other end.
There is simply so much more to it than meets the eye. The whole system is so broken. Where to start? A single measure doesn't change much, paving over one problem but opening up another.
Broken is a VERY lenient term. 😅
Yeah. We have a bad housing shortage, but it's hard to buy land. Hard to get a permit. Hard to meet the regulations. Hard to get a mortgage. Hard to get the utilities hooked up. And the resulting building costs so much to pay off that the rent is too expensive for potential renters. So it just sits there, empty. People build apartment buildings and then are forbidden to rent them out because a regulation was added that you need 2 parking spaces per unit and they only have 1,75 per unit. So it just sits there, empty.
Yeah. The thing that really made me aware of this is the fact that the German government still can't figure out how to get the money out of the EU Covid fund. It's billions of euros, sitting there for years, but they agreed to digitize some government offices as a precondition to receiving the money... and they just. can't. do. it.
LOL!!! OH WELLZ! 🤷♂️
So the state says, "We need more people doing X! Pay them more to do X!" Then those workers earn more, but then they pay more income taxes, get discouraged and cut their hours or quit. Or the state says, "We need more X being built! Offer more money for X!" Then those businesses find out that they need to fill out 864 forms, hire a lawyer, a tax accountant, a diversity offer, wait a few months or years for a permit, do an environmental assessment, apply for a subisidy and a government loan with another 107 forms... so they cancel the contract.
Biggest trouble is that easy money creates fads, rent seeking and distorted incentives. Or in another wordv Corruption. nostr:nevent1qqsrrajs0jq5wxgmeepp09uxqdrjgymuxtzefc9htmpcus0ertcw2rcpp4mhxue69uhkummn9ekx7mqzyrwkvn27gqtyxw5v660sqkhpfqyqgdgh3x6emed0qcnkmejkx0f3jqcyqqqqqqgtgtz4d