There are three areas in which the United States has inflation. Otherwise we have been in a deflationary period for 20 years.
They are: housing, health care and education.
The most distinguishing aspect of these three inflation causing categories is that they are immune, at present, to foreign competition.
I have dealt with healthcare and education in other blogs.
In this I want to point out that housing requires federal legislation in order to break the stranglehold that local developers, unions and building departments have on the housing market.
I have been looking at pre-fab housing systems for over 50 years. I have seen many that were superb and very economical. I have watched some manufacturers export to Japan where there is a small market for such housing. I have watched Swedish prefab house builders fail when they try to export to Europe.
Over that 50 years I have seen endless failures in the prefab housing business. The reason is simple. It is too costly to battle local building departments.
The only way around this problem would be federal legislation.
I don't expect that any time soon. Put it another way... We will get federal legislation for prefab housing one day after the mortgage income deduction is phased out.
The most distinguishing aspect of these three inflation causing categories is that they are immune, at present, to foreign competition.
I have dealt with healthcare and education in other blogs.
In this I want to point out that housing requires federal legislation in order to break the stranglehold that local developers, unions and building departments have on the housing market.
I have been looking at pre-fab housing systems for over 50 years. I have seen many that were superb and very economical. I have watched some manufacturers export to Japan where there is a small market for such housing. I have watched Swedish prefab house builders fail when they try to export to Europe.
Over that 50 years I have seen endless failures in the prefab housing business. The reason is simple. It is too costly to battle local building departments.
The only way around this problem would be federal legislation.
I don't expect that any time soon. Put it another way... We will get federal legislation for prefab housing one day after the mortgage income deduction is phased out.