Housing Problem :: essays research papers

Many economists argue that market solutions are to a greater extent efficient than government agencies in providing services even when it comes to merit goods. In the discussion of lodgment problem, I would disagree with the economists view. lodgement is a very complicate issue that I believe it provide work the best by the cooperation of market and government agencies. The Canadian government has worked for many years on the housing issue, but does not face to have any adequate solutions to solve the problem. The housing market, unlike some other industry, has a dominant feature of inelastic short-run supply. This characteristic of the housing market has made a great obstacle in make do with the problem. In fact, we may look at other countries experiences and learn how to incubate with the problem effectively. Canadian governments housing policy is ground on the idea that everyone is entitled to decent and affordable housing. Housing is a necessity and everyone needs a pl ace to live. It is for this reason that government stipulate its close to ensure everyone is living in housing of adequate fictitious character at a price they can afford. However, the government has turned into abuse definition of decency and affordability. Firstly, decency is subjective according to different cultures. I think that the Canadian government is setting a very high value on living environment, and such a high standard may fount more(prenominal) difficulties in solving the problem. Secondly, Canadian government has continuously trim back its standard in defining affordability. It was consider affordable if housing personify no more than 20% of your income. Nevertheless, the standard has been reduced to no more than 40% until recently. Such dramatic change of the figure has made the goal become ambiguous. Practically, the government has tried many methods in dealing with the housing problem. Housing code enforcement is a method that tries to regulate minimal con ditions for renting housing. However, this method does not seem to work because it brings additional costs to the tenant. On the other hand, the government tries to help people become homeowner by benefits in kind, such as imposing tax exemption on first home down payment and low interest count on mortgages. However, the method does not really aim at dowry the poor. Moreover, the government tries to increase the supply of housing by building new-sprung(prenominal) shelters and buying existing apartments. Yet, none of these work efficiently. The reason that building new shelters does not work is because most of these new housing projects are pricy and time consuming.