It is the fact that food, house and clothes are basic necessities of human to live in today’s world. As everyone cannot afford buying a house, some people believe to provide house to such misfortune people by government. However, I believe that such schemes would result in inflation in economy unless a proper location system is prepared.
If everyone owns a house, people have more money to spend on other things. They will buy new clothes, arrange international trips, for instance, increase in more disposable income. Although people will invest money, spending on luxurious items will increase a lot. In fact, people will change the product more often than their usual life. Evidently, such higher spendings would lead to inflation in the economy.
However, the prices of housing will affect a lot. People invest funds in building houses and renting to others. The strategy to provide free housing will affect a lot of such investors as prices of homes will reach at its lowest rate. As anybody is having a dwelling, no one will spent on building a new unless a luxurious home is required. For instance, a recent scheme by the government of the India for providing homes at a subsidised rate results in sharply falling prices of residence. People will refrain themselves from investing their hard earned wages in housing sector due to such steps by government.
To sum up, the idea to provide free housing for everybody who cannot afford is impacting enormously on the economy and its constitution. It should not be done unless the income disparity is prevailing in the market.
It is the fact that food,
house
and clothes are
basic necessities
of human to
live
in
today
’s world. As everyone cannot afford
buying
a
house
,
some
people
believe to provide
house
to such misfortune
people
by
government
.
However
, I believe that such schemes would result in inflation in economy unless a proper location system
is prepared
.
If everyone
owns
a
house
,
people
have more money to spend on other things. They will
buy
new clothes, arrange international trips,
for instance
, increase in more disposable income. Although
people
will invest money, spending on luxurious items will increase a lot. In fact,
people
will
change
the product more
often
than their usual life.
Evidently
, such higher
spendings
would lead to inflation in the economy.
However
, the prices of housing will affect a lot.
People
invest funds in building
houses
and renting to others. The strategy to provide free housing will affect
a lot of
such investors as prices of homes will reach at its lowest rate. As anybody is having a dwelling, no one will
spent
on building a new unless a luxurious home
is required
.
For instance
, a recent scheme by the
government
of the India for providing homes at a
subsidised
rate results in
sharply
falling prices of residence.
People
will refrain themselves from investing their
hard earned
wages in housing sector due to such steps by
government
.
To sum up, the
idea
to provide free housing for everybody who cannot afford is impacting
enormously
on the economy and its constitution. It should not
be done
unless the income disparity is prevailing in the market.