Sumner on housing prices and migration

I don’t have all the answers [to Chinese housing prices] ….  But I … wonder how much of this analysis is filtered through our own experience with our own real estate “bubble.”  But then we didn’t have 500 million people ready to move from the countryside to our cities; indeed we only have 3 million farmers left. ….

(Actually we might have 500 million peasants wanting to move here–but they are not allowed into the country.)

Scott Sumner, “Spending 60 Minutes in China“, The Money Illusion, 26 March 2013.

Scott Sumner is commenting on a “60 Minutes” TV broadcast on Chinese ghost towns. He teaches economics at Bentley University in Waltham, Massachusetts.

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