The housing equity effect on consumption is the usual conservative propaganda to boost the political strength of the rentiers.
Just ask yourself: what is the effect on spending of earned INCOME? not wealth, of earned INCOME?
Isn't that likely to be massive?
If most consumers feel poor and don't have money to spend, is that because their income from work has been stagnant or declining, or is it because house prices have been stagnant or declining?
What about policies that boost wages instead of house prices to boost demand and employment?
Perhaps they are politically impossible, because 70% of voters are middle aged or retired wannabe rentiers with small properties, and dream of ever higher house prices for themselves, and ever lower wages for everybody else.
They are fools who will pay dearly for their "F*ck YOU! I got mine" attitude, but in the meantime... - Blissex
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