“A caller on the Bill Good show this morning [29 July 2011, as recalled by E.G. at VREAA] was saying something to the effect of his being not sure why he bothers living in the Lower Mainland anymore:
Caller (Paraphrased): “I work long hours to be able to pay for a house. I drive long distances to get to and from work. I barely do anything in my expensive house other than sleep and go back to work each day. And on top of that (speaking about the upcoming additional gas tax) every time I turn around I’m being taxed for something else.”
Mr. Good: “I think that you’re speaking for thousands of people right now.”
When the speculative bubble deflates, as all bubbles inevitably do, these “thousands of people” will be in an even worse situation, as their “expensive homes” will be significantly less expensive, but they won’t be in a position to benefit from that. Their mortgages, workload, commutes, and taxes will all be just as onerous as before. And because our economy is so overdependent on RE, some will have the added burden of their employment and/or income being in jeopardy.
Can we imagine how demoralizing all that is going to be?
The misallocation of resources caused by speculative manias is deeply detrimental to a society, in so many different ways.