Paulitical Economy™

Post 365: Home Sizes Shrink as Their Prices Soar And Spirit Soars No More

Paul Musson

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0:00 | 28:46
  • Home Depot is still experiencing slow growth due to consumer uncertainty and normal interest rates.
  • Spirit Airlines goes bankrupt.
    • No taxpayer rescue.
  • Prices of Kimberly-Clark products are falling and volume is rising.
  • There are many apologists out there for soaring home prices i.e. those who own houses.
    • But no, increasing home sizes do not justify higher home prices.
      • And home sizes have been falling over the last ten years.
  • Financial Ructions
    • The driver of Canada’s GDP growth has been government spending.
      • And investment has been weak.
        • Which does not bode well for our economy’s future productive capacity.
  • Book Review
    • In the next two chapters of George Selgin’s False Dawn we see that:
      • Herber Hoover was much very much a Keynesian while Franklin Roosevelt was not.
      • And that the Roosevelt administration was extremely hostile to business.
        • And thus the collapse of investment.