🚨FRIEDBERG: "60% of middle class household's net worth is in their home. Only 10% is in owning the S&P 500, index funds, whatever in their retirement accounts. By creating this American dream around housing and allowing the Federal government to provide loans on housing, we've increased the cost of housing and created a destructive housing bubble that reduced people's exposure to participation in productive value creation like the ownership of businesses. Instead, we've stored our net worth in a house and in order to keep the economy and the social structure stable, we've created policies that allowed the continuation of the growth in the value of houses so people feel that their net worth is incrementing, and that's unfortunately very unnatural."
