Hard Truth about Old Guard’s insight on home ownership

It’s a myth that LKY and Dr Goh etc were geniuses for their insight into the importance of home ownership in building a nation and their public housing building programnes.

They were juz good in copying and pasting best practice of ang mosh. From the PAP’s bible*:

After the second world war … Governments across the rich world decided that they had to do more to care for their citizens—both as a thank-you for the sacrifices and to ward off the communist threat.

To this end, they vowed to boost home-ownership. A country of owner-occupiers, the thinking went, would be financially stable. People could draw down on equity in their house when they hit retirement or if they found themselves in difficulty. In the late 1940s and the 1950s manifestos of Western political parties became more likely to identify home ownership as a policy goal, according to research by Sebastian Kohl of the Max Planck Institute for the Study of Societies. Over time, the notion that owner occupation was superior to renting became common, even apparently self-evident.

Policies to promote owner-occupation proliferated. In America the Veterans Administration made mortgages with no down-payment available to veterans in the mid-1940s. Canada established the Central Mortgage and Housing Corporation for returning war veterans. In 1950 the Japanese government established the Government Housing Loan Corporation to provide low-interest, fixed-rate mortgages. Changes to international financial regulations also encouraged banks to issue mortgages.

Related post:If LKY were alive, PAP govt wouldn’t publicly admit that HDB leases end worth nothing

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*PAP’s bible

I’ve blogged before that the PAP doesn’t need that many smart people as it follows most of the Economist’s prescriptions (except on hanging, drug legalisation, free media and a liberal democracy). It has been an Economist mantra that market pricing is “betterest” because it uncovers the “correct” price. It is also a PAP Hard Truth.