There are two major factors that have made housing in America so unaffordable to most. The first is of course the destruction of the dollar by the FED. However this could be offset by wage inflation which brings us to our second factor, declining wages and joblessness. As the FED is clearly responsible for the devaluation of the dollar, so is international trade the cause of wage destruction fro American workers. One of the candidates for president understands this quite succinctly.
From The Donald's 2016 Presidential Announcement...
"They can’t get jobs because there are no jobs because China has our jobs and Mexico has our jobs. ...And the people are saying ‘What’s going on? I just want a job. I don’t need the rhetoric, I just want a job.' I tell you I’ll bring back our jobs from China, from Mexico, from Japan, from so many places. I’ll bring back our jobs, and I’ll bring back our money. Free trade can be wonderful if you have smart people. But we have people that are stupid. We have people that aren’t smart, and we have people that are controlled by special interests and it’s just not going to work...
Now Ford announces a few weeks ago that Ford is going to build a $2.5 billion car and truck and parts manufacturing plant in Mexico. $2.5 billion. It’s going to be one of the largest in the world. ...I would call up the head of Ford, who I know. If I was President I’d say ‘Congratulations, I understand that you’re building a nice, $2.5 billion dollar factory in Mexico and that you’re going to take your cars and sell them to the United States. Zero tax - just across the board.’ And you say to yourself, ‘How does that help us, right? Where is that good.’ It’s not So I’d say ‘Congratulations, that’s the good news. Let me give you the bad news. Every car, and every truck and every part manufactured in this plant that comes across the border, we’re going to charge you a 35% tax. Okay? And that tax is going to be paid simultaneously with the transaction, and that’s it."
I'm not suggesting Donald Trump will be president. But much like Ross Perot 24 years ago Trump understands the perilous position international trade places the American worker. Trump has the advantage of speaking with hindsight as opposed to Perot's foresight. American labor has been devastated by NAFTA, China's favored nation status and every other shit trade deal that has been rammed through since Clinton. Donald Trump has the potential to be Ron Paul, Bernie Sanders and Ross Perot rolled into one. With the expanded media exposure of non-political celebrity to spread the message. It is a message average Americans need to hear and clearly understand. Housing is paid for with wages and Donald Trump wants you to earn a higher wage.
Housing, nor any other asset or commodity can never be truly affordable nor endure true price discovery unless America pulls back from the faux-free-trade and fiat money abyss. The Pauls, Sanders, Perot and others have tried to spread this message but their stage was to small. Donald Trump is the first person with his level of celebrity and influence to tackle what is the core problem in our nation. The income and opportunity disparity in America that has it's roots in the destruction of our manufacturing base and currency.
Perhaps this whole campaign is an ego trip for a most eccentric billionaire. Even if that proves true, Donald Trump is now working Americans loudest voice in the 2016 presidential campaign. He seems to be reveling in the role.
Read his entire announcement speech here:
NY Daily News - Transcript of Donald Trump’s 2016 presidential announcement