Posted on 11/27/2012 9:06:08 AM PST by whitedog57
Owning or Renting: High Risk or Tragedy of the Commons?
The tragedy of the commons is the depletion of a shared resource by individuals, acting independently and rationally according to each one’s self-interest, despite their understanding that depleting the common resource is contrary to their long-term best interests. Examples abound such as common grazing on public land, depletion of fish in the ocean and why public restrooms are usually filthy.
Homeownership is an example of the “tragedy of the commons.” Public housing projects, such as the infamous Cabrini Green in Chicago, are an example. Public housing is often poorly maintained and poorly cared for by the renters. It has been observed that households take better care of their dwellings if they are owners, solving the depletion of the shared resource: public housing.
This brings us to attempts by the government to encourage home ownership, especially among current renters. The Clinton era “National Homeownership Strategy” under HUD Secretaries Cisneros and Cuomo is an example. nhsdream2 When combined with the reduction of capital gains taxation on housing in 1997, it contributed to the housing bubble and subsequent crash. Encouraging fragile households to own greatly increases their risk on insolvency (versus renting), but at least this strategy moves away from the tragedy of the commons problem.
The point is that whether it is encouraging lower income households to own their home (excessive risk taking) or rent (tragedy of the commons), providing housing for lower income households is a challenging public policy issue because these households are … poor.
The pendulum is now swinging back to renting as the preferred government public policy, so we are likely to see a rise in the tragedy of the commons problem … again.
(Excerpt) Read more at confoundedinterest.wordpress.com ...
When my parents were first married, they rented. The property was in a poor neighborhood, but it was spotless inside and out.
The neighbors, I won't say who, in the same area and with more or less the same income (obviously) lived in SQUALOR and probably still do. Their view: 'It's SOMEONE ELSE'S property, let the owner clean it and do the lawn, etc.' What a mentality! Some things never change.
Pathetic. No such thing as poor in America, we live the in the greatest country in the world?
I could say I am POOR right now, because I CAN'T live like Donald Trump, therefore out of my jealousy I AM POOR, I wants.
Those people in public voucher housing, are RICH, very RICH. Drive new cars, tattoos, best electronic devices, plenty of food, good roof over their heads and 24/7 to steal whatever else they need. They are not poor, but they are extremely LAZY and good for nothing.
Like you say they WANT to live in SQUALOR, let the white man clean it up, throw their trash everywhere. I have rentals, I know.
The real poverty is the spiritual emptiness of living in the moment and possessing NO core of time abiding and functionally sound values.
THAT is spiritual squalor! Go to church every Sunday but live and conduct yourself as if you never saw the inside of a church, possess NO personal dignity or pride in yourself, refuse to discipline your self, make NO demands on yourself, continue bearing children OUT of wedlock, reward young people who don't assimilate and who reject school, lionize thieves, drug addicts and liars, continue whining as if THAT justifies any behavior .... “The man who has no inner-life is a slave to his surroundings.”
That's it simply said.
They have government housing at military facilities. Are those torn up?
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