Bern Central

It is now painfully clear to everyone that incontrovertibly, unarguably there is a global crisis with affordable housing. The eye ball test evidences that there is only so much undeveloped land presently capable of comfortably supporting human habitation. As a result, it behooves us to try and maximize to the extent feasibly possible not only the number of dwelling units, but also how they may most reasonably be priced.

Other non-capitalist systems, exceptions to the rule notwithstanding, demonstrate or suggest recent if not long-term fail in this area. As expected, capitalism typically prefers what it calls ‘supply and demand’ as the approach to this issue. The core problem with that, not to discuss any other flaws which we will set aside for the moment, is that there is a certain intellectual dishonesty at work here.

We all learned in Economics 101 that supply and demand exists at the most rudimentary level whenever there is a buyer and a seller. We then learned of the ‘free’ market which means that both the buyer and the seller are equally at liberty to be as reasonable or as unreasonable as either party chooses. It is only then when both sides decide to consummate business that they move in from the two extremes which gives us the ‘fair’ market. For there to be a fair market however, the buyer and the seller must both be empowered to reject any offer.

Unfortunately there are only three things that you need to survive.  Competition (the one virtue of capitalism) improves products while lowering prices through increased supply following the profit motive.  And of course, substitution equals competition in that if the cost of wheat is too high you enjoy rice, etc. However, along with breathable air and drinkable water a human being must have a roof over his/her head for him/herself and their family.  No substitutions or work around can exist for that.

bernmeister’s solution utilizes a cost plus methodology which guarantees reasonable, not excessive profit for landlords who must ever strive to provide continuously improving housing conditions at reduced or optimal costs in addition to operations, a dedicated financing mechanism (also employing a cost plus basis) helps underwrite housing construction. Anytime someone pays too much or too little for something an economic disutility is created [help bern coin his phrase].

There is a lot more to it than just this, but bern is optimistic and that extensive dissection of his concept will show how to solve most of the problems inherent to the situation. Obviously whatever guides your motivation, whether it is the concern for seeing the homeless suffer in the street, or it is the financial drain of spending thousands of dollars to inefficiently and temporarily put them up in hotels, or if it is some other negative to this larger equation, we need to correct the status quo. I dare say channeled regulation will offer the most reasonable solution.

bernmeister hopes you will enjoy the read and consider a purchase once this material is released. (Immediate scheduling priority has been for the larger international MMS and not the smaller intra-national picture of excessive rent and its resulting scourge of homelessness. However, bern is returning his focus to this project and hopes to have it available in 2023).

Further details and developments on this subject may be found at acabern.com