You know because okay let's look at this behavioral thing okay

You know because okay let's look at this behavioral thing okay um nearly everybody who gets on the property ladder what they do is they go how much money can we scrape together how that's our deposit if we if we manage it okay how much money can we borrow hmm okay and then they look to the maximum amount they can borrow and scrape together and they start looking for properties at that price. So as soon as interest rates go down people are just gonna start looking at 500,000 pound homes rather than 400,000 pound homes which doesn't mean they get a better house because the 400,000 pound house now cost 500,000 pounds okay. You know it's just you know in a market of scarcity all you're doing when you drop interest rates is bidding up these asset prices okay. Now it seems fairly obvious to me that the Georges said it right and that we should actually tax you know unimproved land value and we there needs to be some sort of tax on property at that level because otherwise you know there's a little bit working in kind of consumer capitalism where you go you look at the extent to which some if you work for Samsung right you look at the extent to which televisions have become both better and cheaper okay it's a spectacular achievement I mean you know you can go out and kinda casually buy a television which you know uh I mean the richest person in the world couldn't afford in 1990 pretty much okay possibly even later than that okay. You know it's a miracle right now all that seems to have happened in my adult lifetime is the money people have saved on fantastic televisions on low cost airlines on all the innovations of capitalism has just got swallowed up by property prices. Yeah all the gains from dual Lincoln households basically ended up getting swallowed up by property ridiculous really okay it's a bit like that half serious half joking comment about the Indian economy which is the only problem with the Indian economy is that if GDP grows by 10% the excess will just be spent on even bigger weddings