Joseph Stiglitz, renowned economist and “winner of the Nobel Memorial Prize in Economic Sciences, is the third-most cited economist in the world” according to Research Papers in Economics.
In a Friday interview with David Ball of the BC online news source, the Tyee, Stiglitz addressed Canada’s housing inequality situation. Here’s a brief preview of the article:
“Few can afford to buy a home or condo anymore in Vancouver. Experts predict people my age will be priced out in 25 years. There’s no way I could conceive of building equity for my retirement through the means of having a home. Is this creating a greater inequality gap?
Yes. In some cases, people can live a little further out than the centre of the city — there are ways some people can get access to real estate. How you create diversified cities, though, is one problem. The other problem is that we’ve helped fuel housing bubbles, creating more inequality. Those who get access to credit, usually those who already have wealth, get more and more wealth. This is one of the main sources of wealth inequality creation.
The excessive growth of credit supply… increases the price of assets like real estate, and [central banks] say, ‘Now we can lend more, because there’s more collateral.’ But who has that collateral? The rich people who previously owned the assets. So you get this spiral of credit creation that fuels the growth of inequality.”
From the Tyee online.