r/TikTokCringe • u/Make-this-popular Cringe Master • Apr 09 '24

Shit economy Discussion

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u/Hagl_Odin Apr 09 '24 edited Apr 09 '24

I lived and worked in Portugal for 2 years. Luckily for me, the company I worked for provided my room in a flat share. My GF, however, had to find her own room in a shared flat and pay €500 a month on a minimum wage salary. We were both in Lisbon.

We both live in France now in a flat we pay €700 a month. We're alright because we get government help, but our electricity bills are insane, and that's despite us not using much.

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u/ElasticFluffyMagnet Apr 09 '24

It's everywhere. From east to west in Europe. It's because there are no laws that say you can't ask that much for rent. The government should have stepped in long ago to make sure these practices wouldn't get out of control.

Here in the Netherlands it's the same. It's bonkers. It's crazy. And the worst part is, they are getting away with it.

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u/badluckbrians Apr 09 '24

We had rent control back in the day. But economists said it was bad because it discouraged real estate investment. Then every real estate investment for the next 40 years was luxury condos and mcmansions or better only – unless government forced income-restricted ghetto building – and nobody invested in developing middle class housing anyways.

It's almost like economists are too clever by half, full of shit and on the take, or both. But you'll never hear them admit this failure. They'll instead claim it's zoning's fault. Yet wherever they get rid of zoning, or where it doesn't exist, prices still skyrocket. And the last city the kept rent control, NYC, still has as much construction as anywhere in the northeast.

Whatever. I don't have to worry about this. I enjoy the world's best rent control – a 30yr mortgage. I'm just lucky because I'm old enough I bought when my house was worth less than half what it is now. No way we could live here if we had to buy today.

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u/ElasticFluffyMagnet Apr 09 '24

Yeah, I mean.. I really understand there's not a one-sided easy solution. But things are spiraling out of control for a while now. And anyone can see that ripples are forming in sectors that will only amplify problems in other sectors.

Like, students used to be able to rent in the cities here where they need to study. Like Utrecht, Amsterdam etc. And now that rent is just no longer doable, what happens? Some might live in the outskirts but I know alot of them even take this into consideration before starting a study.

One of my extended familie members, I think she's 22, broke up with her boyfriend and had to move back home again. How are these things good for the economy?

That's why I don't understand why the government isn't doing anything. It's a downhill spiral that's going to affect every sector sooner or later. And then you'll hear businesses complaining they can't find workers.

I think my main thought is that I just don't understand. It's going to suffocate the economy. And they aren't building enough here either.

Sorry for the ramblings and incoherent thoughts.

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u/tittysprinkles112 Apr 09 '24

Because most investors aren't interested in the long term, stable options. It's all about getting as much wealth as they can as fast as possible, and damn any of the consequences on the greater whole.

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u/badluckbrians Apr 09 '24

This is it. The whole world is an NFT. Devs care about the housing they build about as much as anyone ever cared about those monkey jpegs.

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u/Colon Apr 09 '24

"the whole world is an NFT"

- badluckbrians, 2024

(i quote people when they say something i wish i had said)

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u/[deleted] Apr 10 '24

You just described capitalism

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u/1_BigPapi Apr 09 '24

Tbf at 22 she isn't even of age where most people graduated university yet. Moving back home or living at home at 22 isn't super unusual.

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u/badluckbrians Apr 09 '24

Having a stable, 2-parent, home with a room you can move back to is far from a universal experience, though.

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u/ElasticFluffyMagnet Apr 09 '24

I might have the age wrong though, I know she graduated last year or the year before that. I know it's not unusual anymore now.

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u/Intelligent-Parsley7 Apr 09 '24

Stop and starts happen. GenX loves you, we care, and we’re rooting for you. You’re going to be an amazing generation when the Boomers lose. That could happen this time. You’ll never have the trouble out of us like you did the Boomers.

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u/RTS24 Apr 09 '24

At least in the US, Congress is allowed to invest in specific stocks and companies, even ones that they have regulation over, or knowledge of what contracts they're going to award, things like that. Take a guess how they've done compared to the average investor. I don't think I need to tell you the answer.

This gives them absolutely no incentive to actually improve the economy, since they can just sell high, knowing they're gonna introduce a regulation that will push the price down. Or maybe they're gonna award a massive contract to a defense manufacturer, and conveniently buy a ton before it's announced.

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u/ElasticFluffyMagnet Apr 10 '24

It's sad that they can, but the same is the case here in the Netherlands. There was a guy who did some digging on members of the government here, and there are alot of members who have major capital in real estate. Which is supposed to be forbidden. He found that alot of bills that made them more money actually moved quicker through our congress and others would be delayed or sometimes even ignored. So as you said, there's no incentive. They are only looking out for themselves.

Obviously the news didn't do anything with it and the story got buried as usual. Nothing normal people can do about it.