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An End to the Unaffordable Housing Crisis

It has never been explained to us, that the huge increase in the cost of a house, entails an equally enormous increase in the money supply.

When that stark staring fact, is pointed out to us, we might then wonder from whence cometh all that new money.

The only source of new money should be the Government. We fondly imagine that anyone else minting or printing new money, would be a forger, a counterfeiter, a criminal. We are not aware that any other agency than the Crown is allowed to mint or print new money.

So how does it come to pass that the total equity of even a village, can increase by millions if not billions of pounds, without the Government having any hand in the creation of a booming property market.

Apart from inheritance tax and more money from stamp duty, the Government would deny any share of the enormous increase in the money supply.

Think about it for a while, until the thunderbolt hits you, that someone is making a vast profit, but we cannot see who it is.

The whole point is, that if we could puzzle out how the increase in the money supply is achieved, it would then become quite obvious, how it would be possible to make even the greatest increase in the price of housing affordable to the ordinary person.

There is nothing whatsoever to prevent the Government from saying that if the value of a property is going to rise by say a hundred £1,000 then the Government could afford to give a suitable purchaser £100,000 of brand new money, with which to buy the house.

There will be no difficulty about that at all, because it would not cost the Government a penny, to create the new money and if the person who was given the money to buy the house, was told this must be paid back, to the Government at some time in the future, without having to pay any interest on the money, then even the lowliest of constable, on the beat, could afford the house he needs to buy, to set up home in the village, where he wishes to work.

Whatever objection might be raised to this excellent approach to the affordable housing problem, we can say “because this is such a new idea, we need a little time to work out any difficulty”. As yet we haven't had a chance to work out the very best way of using this new knowledge.

All that really matters is that we now have a foolproof answer to the whole problem of affordable housing.

Doctor Edward C Hamlyn MBChB