4 November 2013 Edition
Housing: Proof that capitalism doesn’t work
In the 26 Counties, there are over 90,000 families looking for housing but local authorities are no longer building houses
NEXT TO the catastrophic loss of employment, the crisis in housing is the most serious manifestation of the current dire situation – with thousands facing the loss of their homes, thousands again stuck in negative equity, and increasingly lengthening waiting lists of those who, in the current capitalist system, cannot get housing.
Quite simply, the capitalist system has proved itself unable to solve the housing crisis, providing decent places to live for our citizens, because, under capitalism, everything is subordinated to the profit of the few at the expense of the many.
In recent weeks, the airwaves have been rocking with dire warnings that another housing bubble is on the way as house prices in Dublin (though not elsewhere) begin to show signs of increase.
The problem remains the basic one: more people want houses than are available, and under the capitalist law of supply and demand this leads to an increase of prices – an increase that can only be avoided by building more houses, increasing supply and thereby lowering demand.
According to official figures in the 26 Counties, there are over 90,000 families looking for housing but local authorities are no longer building houses. This is part of the neo-liberal mantra that the state should stay out of economic activity. And the result is that thousands are forced into private rental situations where they are ripped off by speculators or left homeless.
Thousands more face the appalling stress of their personal lives trying to meet bills – especially high mortgage payments – that cannot be met.
What is needed is for the state to intervene. Even conservative economists acknowledge that we need to build 30,000 housing units now, not just to provide for families but also for the massive numbers of adult single people who need somewhere to live. We know that this is not happening and we know that the investors are afraid that the profits won’t be there so the banks won’t provide the finance and the vicious circle goes on.
If local authorities resume building houses, initially for rent but ultimately for purchase for the average worker but with special emphasis on the needs of young adults, we can quickly end this crisis and produce a stable housing situation.
What needs to be made clear is that housing is NOT a market, but a social need that must be taken out of the hands of the free marketer profit-makers.
Building 30,000 housing units will have other positive effects for the economy, not least in providing jobs in the construction sector which was savaged in the bust.
The homeless charity Focus Ireland has argued that a €400million investment will create 3,200 jobs alone. Maintaining such an investment annually in social and affordable housing would mean a massive improvement in the job prospects of many unemployed and improve the living situation of thousands of our citizens.
Focus was particularly scathing about the ‘tax-break’ incentives announced by the Government to ‘kick-start the economy’. Mike Allen, Director of Advocacy at Focus, says this scheme was “ill conceived, when what is needed is investment to build affordable and social housing”.
• Mike Allen, Director of Advocacy at Focus Ireland, criticises Government ‘tax break’ incentives
Of course, such a programme would not only help citizens looking for housing: it would reduce the pressures which banks can put on those with arrears problems, and so improve their situation too.
But the Fine Gael/Labour Government is totally wedded to the capitalist way of doing things, in which housing is a market and profit is essential. And they are completely committed to ‘returning the banks to profitability’, which means screwing the general populace in the banks’ interests.
Social housing is not on their agenda, so instead they come up with yet another scheme to give entrepreneurs more profit.
Governments exist to provide for the needs of the citizens, by direct involvement in economic activity if necessary, and by creating conditions that ensure the needs of the people are met.
By stating the issue that bluntly it is obvious that this government doesn’t believe in that, and it is obvious too that Fianna Fáil cannot go ‘back to its radical roots’ (such as they were) for it too is wedded to capitalist orthodoxy.
Our choices are simple. We can carry on hoping that things will magically get better and that the housing crisis will ease after sufficient numbers of our young people have been driven abroad in emigration or we can recognise that relying on market forces to provide basic housing needs is a proven failure.
Continuing to vote for any of the three Establishment parties is a vote for the continuing catastrophe in people’s personal lives. That is why the Sinn Féin alternative is so compelling.