Home > Miscellaneous Musings > Homelessness reaches epidemic proportions across the globe

Homelessness reaches epidemic proportions across the globe

Australia’s homeless population is soaring.  With the lowest-population-to-land-mass ratio of any major economy on earth, well over 100,000 humans on this relatively empty continent sleep on streets, park benches, gutters around our ‘crowded’ cities and country towns.

The reason?

Well, if you allow government-supported and continually inflated leverage in any subset of the economy, if you compel people to go into massive debt to buy any essential good such as food, clothing or shelter, then massive price distortions will occur.  You can have massive overbuilding but no one having the income to buy the houses.

You can have foreclosed houses and people living homeless on the street right outside empty houses.

And, ironically, that’s exactly what’s happening in Australia and in the U.S. today.

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Categories: Miscellaneous Musings
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