20181218 (Tue)
The question of future – better to tell the negative side of the story? Why can’t there be one decision/policy which makes everyone happy? Part 3
There cannot be one policy that makes everyone happy. Announcing a better borrowing rate will mean the banks are taking higher risks. Risk of higher non-performing loans/debts. Risk of having high gearing.
When land is scarce, in the eagerness to satisfy the poor, government gives away land – cheap state land – for housing. Later, everyone should be happy with a roof over the head. But, what happens is people are still not happy with this remote lands. They want prime lands – near to town. Similar issue happens to education. When education is free, people do not want to study. You have all sort of problem with quality of graduates and graduate unemployment. So, giving free things will not solve problem.
There is no one decision/policy which will solve all the housing problems. Least is making everyone happy.