Split-REN by fdjerue7eeu

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									Split-REN
Mr. Ren Zhiqiang recently thrown a view to the effect that housing prices in 30 years
of reform and opening up a 16-fold, while Chinese cabbage prices have gone up 100
times, 100 times the wage also rose, so house prices relative to wages is not up. Vocal
opposition of public opinion was caused by the market, because the point of view
challenges the common people's intuitive feelings.
I do not know if housing prices 16 times higher value is calculated? Before 1998,
most cities because there is no housing prices, the era of urban workers is the unit
housing allocation, the real estate market has not developed, how to price? Even the
price of cabbage, 20 years ago is under control, not to mention the salary. Distort the
prices of these simple comparisons are meaningless.
Open 30 years house prices rose by 16 times, while the price of Chinese cabbage
Even if the price 30 years ago, the price of vegetables has not been distorted, will they
still does not make sense to compare the two because both the price formation
mechanism is different.
Open 30 years house prices rose by 16 times, while the price of Chinese cabbage
intuitively we can see, housing is not removable, are real; and cabbage can move
freely, not only in the domestic market liquidity, but also sold abroad. Therefore, as
housing is not available Xiang Chinese cabbage can be copied, free market
competition in the same position can not produce more of the same quality of Zhu
Fang, Ji Ran can not repeat the same products, free competition rules of the market is
difficult in a market 住房 play a role, while the cabbage market fully adapt to the
rules of free competition in the market. Beijing, Chinese cabbage, if the price high, if
profitable, will attract Shandong, Hebei's farmers to produce the same
quality that Chinese cabbage, Chinese cabbage in the market so that supply will
increase, prices will fall. But the Beijing World Trade Center location is good, high
rent, competition in the market again by the construction of the 1 World Trade Center?
Secondly, we look at the price of housing and cabbage What is the difference? If a
sudden price increase in Beijing Chinese cabbage, Chinese cabbage rest of the
country will be transported to Beijing, that is, the price of Chinese cabbage after the
transaction is fully determined by the market, it is difficult to manipulation. Not the
same as residential, a residential area of price change by the time the transaction is
actually determined by housing prices, in general, residential mobility is poor, can be
traded for each residential house only a few, a small number of tradable Most of the
residential housing prices determine the price. Therefore, the price of housing is very
easily manipulated. Wenzhou Why not fried cabbage and like real estate speculators
child? Reason for this is it.
Mr. Ren Zhiqiang recently thrown a view to the effect that reform
View from the law of price fluctuations, price fluctuations in line with the general
cabbage price equilibrium theory, that there is a market equilibrium, prices will
fluctuate around the market equilibrium. The housing market has the characteristics of
investment goods, which have no market equilibrium, the price is very low and very
high when the market can be "clearing." If the price of Chinese
cabbage, profitable, it will attract more farmers to plant Chinese cabbage, Chinese
cabbage supply to demand rather than market prices, and return to equilibrium.
However, rising housing prices will attract more investment capital into the market
supply increased, demand faster, faster to stimulate price increases, an
"irrational exuberance" of the situation, until the bubble burst.
Why in the world with the stock market crisis, there is the real estate crisis, but not
cabbage crisis, truth in this.
House prices relative to wages is not up. Thus giving rise to the market precisely
because of this, almost all the Western developed countries are highly market-oriented
Chinese cabbage, but no country is entirely market housing market, the market can
not solve the housing problem. To arrive at this conclusion, the Western state has been
explored for centuries. With industrial revolution, depth, led by British major
industrialized countries face a huge housing crisis, the majority of urban residents
without their own housing, poor housing conditions led to the plague and other social
crisis, the public strongly urge the Government intervention in the housing market.
During this time, the liberal philosophy throughout Europe, the economy and almost
all rely on the market. Many policy makers believe the market demand for individual
suppliers and in the pursuit of their own interests, not hinder the interaction between
them to achieve optimal allocation of resources, so liberal beliefs and forced the
government to intervene in the social housing there is a big contradiction between the
forces. Tension caused by the conflict to make the housing system with clearer
modern means. It is recognized that unfettered free competition does not
automatically lead to the maximization of social welfare in the housing market, driven
by profit, housing supply and demand and will not be automatically adjusted to
achieve a desired balance. Reformers started a lot of energy into the housing
intervention, the modern housing system begins to form. Many countries the citizens a
right to housing enshrined in the Constitution.
In other words, the developed countries in order to clarify the distinction between
housing and cabbage with more than a century of time, before China's
reform and opening up 30 years, so there will be housing and cabbage mix of things
that are reasonable in. But as government policy makers as if Chinese cabbage is also
a real need to manage the housing would be a mistake.
Up to 100 times, 100 times the wage also rose, so

								
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