The poorest always shoulder the burden - of everything - because they’re the ones where even the smallest change affects them the most. They’re the ones most affected by unchecked inflation like we’ve had the last 6 years.
A recession does lead to a “reset” in prices via deflation. Prices go down when spending and earning goes down. That’s literally what happens. Buying power per dollar increases because money is harder to come by, so prices drop to accommodate the drop in spending and earning.
In a recession people lose all their money. Thats literally why things might get cheaper, because no one can afford them.
As we have both said - the poorest are hardest hit, being the most insecure with employment. Consuming their savings degrading professional networks and connections, even falling into poverty.
In short, if you cant afford to buy a house now, it will be much more difficult to during or following a recession.
Buying power per dollar may increase, but only wealthy people have any dollars. Thats why this type of financial downturn is when wealthy people consolidate their positions and buy more houses et cetera.
As an aside, if property in Australia reduced in value by half, we would probably be a failed state. I dont think our various institutions both public and private could navigate those kinds of catastrophic losses.
The poorest always shoulder the burden - of everything - because they’re the ones where even the smallest change affects them the most. They’re the ones most affected by unchecked inflation like we’ve had the last 6 years.
A recession does lead to a “reset” in prices via deflation. Prices go down when spending and earning goes down. That’s literally what happens. Buying power per dollar increases because money is harder to come by, so prices drop to accommodate the drop in spending and earning.
Sure but a “reset” implies everyone starts over.
In a recession people lose all their money. Thats literally why things might get cheaper, because no one can afford them.
As we have both said - the poorest are hardest hit, being the most insecure with employment. Consuming their savings degrading professional networks and connections, even falling into poverty.
In short, if you cant afford to buy a house now, it will be much more difficult to during or following a recession.
Buying power per dollar may increase, but only wealthy people have any dollars. Thats why this type of financial downturn is when wealthy people consolidate their positions and buy more houses et cetera.
As an aside, if property in Australia reduced in value by half, we would probably be a failed state. I dont think our various institutions both public and private could navigate those kinds of catastrophic losses.