Scientific Study confirms link between property ownership and avoid social unrest
DGB, Michael Sommer, and the former candidate for the federal presidency, Gesine Schwan, warned of social unrest in Germany as a consequence of the prevailing economic crisis - an issue that just poses during election campaigns substantial explosives. The search for effective political action against the growing inequality in society, will result in the U.S., because there was a significant relation skillfully exploited, namely between homeownership and social conflict. Unfortunately, the attempt to prevent the promotion of home ownership social tension, to over-stimulation of the real estate finance itself
The search for the causes of the current economic crisis, then passed quickly to the U.S. housing market. The provision of loans to less wealthy clients who wanted to fulfill the dream of own house, was - in addition to moving of dubious credit accounts - identified as one of the evils in the system. On closer examination, however, shows that the promotion of home ownership for decades been a cornerstone of American social policy: the banks were expressly encouraged by the policy to allow even poorer strata of the population to build houses - from governments of all political persuasions. This is by Professors Eggert and warriors of the University of Paderborn in a June article appeared in the service economy has impressively demonstrated (Business Service - Journal of Economic Policy 6 / 2009). The U.S. housing policy is based on the finding that home owners in crisis situations, such as unemployment or illness, and at the age of welfare cases are rare. They are not only less vulnerable to homelessness, the fact that they have home ownership gives them a social status that makes it easier to bridge support to receive and to overcome such difficult situations.
promotion of property shall be protected from poverty and avoid social unrest
In a society that places the responsibility of the individual in the foreground, ie, reduced unemployment benefits, social assistance and publicly financed pensions on and on, it is evident that the promotion of owning a home becomes especially important. Sociologists in the United States identified a circular relationship: in cities with high home ownership rate, the need for social support is significantly lower than elsewhere. Conversely, a scaling back of social services, as we have for some time observed in Germany, to a higher ownership rate, since people at least want to ensure that roof over your head ', though other life risks are acute. (See, eg, Castles 1998). Some authors even go so far to be stated clearly that a higher ownership rate in economically underprivileged classes reduces the likelihood of social unrest (Star Love 1967 after Bratt 2009).
home ownership does not lead to crisis
The concept of the citizen by a high proportion of home ownership to better protect crises and give them a solid foundation for obtaining a high social status, is still valid. Especially in a situation in which the state can insure risks life less and less comprehensive (and will), you can not do without this instrument of economic policy.
What to do, however, a critical development, as we had to watch them in the United States to prevent?
educate the customer about the risks associated with financing and construction urgently
is secure have been missed in the past to regulate the financial sector effectively. Supervisors will be so-called financial innovations that shift the risks in the form of a pilot game advancing to the respective market participants and to a complete lack of transparency the distribution of risk in lending out, have a closer look in future. The days of a naive belief in progress in the blessings more daring financial constructs are over. But this must not lead to the lending is in well-secured projects for building owners to the problem. Therefore it is necessary to shed light on the supply side. Future homeowners must evaluate their financial options realistically. The price-performance ratio in house provider has to be right, and the house has the financial ability of the owners comply. Construction or purchase of residential property in Germany is comparatively expensive, and correspondingly low, the ownership rate. Here the market is asked to offer alternatives, affordable homes that allow families with average incomes to provide home ownership and thus provide for the future.
true pioneering work in these fields that a young company based in Berlin, the COM Concept GmbH, which offers a very interesting building offer each potential customer first full advice and Bauaufklärung.
Conclusion
The unrest is high, and rightly fear among many people, the burden of the crisis are unloaded on one side on her shoulders. Even a threat of social unrest in Germany is the question. With all due caution, in view the development in the U.S. seems necessary, should the instrument of increasing the rate of home ownership are not neglected. This can help relevant offers, but also a clear statement of policy on this social concept.
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Bratt, Rachel (2009): Homeownership as Social Policy in the U.S.: Risk and Responsibility
After the Subprime Crisis http://www.tudelft.nl/live/pagina .? jsp id = 6c837553-02e9-4524-9864-
d17cd7d56206 & lang = en & binary = / doc / Bratt.pdf
Wolfgang Eggert, Tim Krieger (2009): "Home Ownership" as a substitute for social policy: The emergence the financial crisis in the U.S., in: Economy Service No. 6 / 2009 (June 2009).
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