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Compartmentalized Thinking

From: The humble Farmer
Length: 01:37

The value of houses is dropping Read the full description.

Humbleoats_small If they drop far enough, young people might be able to buy one

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Piece Description

If they drop far enough, young people might be able to buy one

Transcript

You have heard of compartmentalized thinking and that is my topic now. When I got out of college I bought a completely furnished house with a garage on an acre of land for $5,000. A year or two later I bought another house with an attached barn on an acre of land for $3500. Back in those days a Maine schoolteacher could buy a house with one year?s salary. Today a Maine schoolteacher would have to work around five years to buy those very same houses, which are now 40 years older and should have depreciated. I can?t tell you how it happened, but the salaries of working people in the United States have been seriously eroded. You might have heard old people wonder aloud how a young couple could even think about buying a house nowadays. But then --- you turn on your television and see that there is a crisis in America: the value of houses has dropped umpty ump percent. In other words, if th...
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