[HN Gopher] At the world's oldest social housing, rent hasn't ch...
       ___________________________________________________________________
        
       At the world's oldest social housing, rent hasn't changed since
       1521
        
       Author : pseudolus
       Score  : 229 points
       Date   : 2021-08-31 11:11 UTC (22 hours ago)
        
 (HTM) web link (www.cbc.ca)
 (TXT) w3m dump (www.cbc.ca)
        
       | dansky wrote:
       | I walked around at the Fuggerei when I was in Augsburg back in
       | 2019.
       | 
       | Here is a video forwarding to the entrance:
       | https://youtu.be/cECanw-2SQw?t=3100
        
       | orblivion wrote:
       | > Residents pay about $1.30 -- or 0.88 euros -- per year for
       | their apartments
       | 
       | The Euro didn't exist in 1521. Wikipedia doesn't even list what
       | the currency was back then:
       | 
       | https://en.wikipedia.org/wiki/Currency_of_Germany
       | 
       | I suppose it would have been priced in some sort of metal back
       | then, and the first official currencies would have been on a
       | metallic standard.
        
         | pweezy wrote:
         | From the original article:
         | 
         | > Fugger charged residents one Rheinischer gulden a year, the
         | equivalent of one month's salary at the time.
        
           | orblivion wrote:
           | Ah, sorry. I tried skimming and searching for some specific
           | like that.
        
         | MeinBlutIstBlau wrote:
         | No shit sherlock...
        
         | zaarn wrote:
         | Back then Germany didn't exist quite yet as country. Fugger
         | charged people in Augsburg in Rheinische Gulden.
        
           | orblivion wrote:
           | I was still expecting that Wikipedia would list the
           | historical currencies in the area, and they did list some.
           | Presumably there was continuity of culture over the centuries
           | despite political bodies and boundaries.
        
       | peterburkimsher wrote:
       | Like happened with the Doom port to desk phones, this is being
       | discussed over on the BeWelcome forums!
       | 
       | https://bewelcome.org/forums/s23259/
       | 
       | BeWelcome is like CouchSurfing but free and open-source. I heard
       | about the Fuggerei from Paul, a guy in Singapore, a few months
       | ago, who I met at the Asia-Pacific weekly meetup (every Thursday,
       | 23:00 NZDT = 6 pm Jakarta = 7 pm UTC+8).
       | 
       | https://bewelcome.org/activities/3343
       | 
       | It's so interesting to hear the same topics coming up. Although
       | I'm not Catholic, and the idea of segregating housing based on
       | religious views bothers me, I like the idea of investing in a
       | community by sharing freely. The Fuggerei outlasted several
       | political forms in Germany!
        
       | IkmoIkmo wrote:
       | In a world with ubiquitous housing, there is no need for social
       | housing, because that which is ubiquitous (oxygen) is affordable.
       | 
       | In a world with scarcity, social housing protects the poor
       | against unaffordability. That's commendable. However, scarcity
       | also means there is not enough for everyone.
       | 
       | Inevitably that means you get a group of poor winners (who obtain
       | a social home) and a group of and poor losers (who remain on a
       | waiting list for a social home).
       | 
       | Those on a waiting list are relegated to the non-social sector:
       | paying market rates. The more social housing there is, the
       | smaller the private housing market is, the higher the rent
       | prices.
       | 
       | Thereby, the scarcer the situation is, the more unaffordable
       | housing is, the bigger the calls for social housing, and the more
       | the differences between winners & losers is exacerbated.
       | 
       | That's what we see develop in many cities . Some pay absolutely
       | nothing, others pay way too much. The winners and losers group is
       | often partially arbitrary. The benefits of rent-control are
       | distributed unequally, some receiving rent-controlled benefits
       | for decades, others remain on a waiting list for decades, while
       | earning just as little. In many European cities waiting lists are
       | >10y, in Amsterdam for example it's about 14y.
       | 
       | Second, the benefits of rent-control take away various healthy
       | market-based incentives. My dad for example lives on welfare in
       | an apartment with 3 bedrooms, by himself in the capital city, and
       | pays 1/3rd of the market rate. He has no incentive to seek out
       | smaller housing which suits his needs just fine. Similarly, he
       | does not make much use of the cultural offerings in the capital
       | city that makes this place popular and expensive: theatre, bars,
       | cinema, restaurants etc, he would be fine living in a smaller
       | town without them. Yet, he has no incentive.
       | 
       | A market based rent for my dad would indeed make it unaffordable
       | for him. At the same time, the market price is a way to allocate
       | supply & demand efficiently. My single retired dad has no demand
       | for the size and location of his home, yet it is in extreme
       | demand by others. The high market rate rent of say $2k a month,
       | if applied, weeds out those who're unwilling to pay the price of
       | $2k worth of opportunity costs (high value for my dad) in return
       | for 3 bedrooms in the capital city (low value for my dad, who'd
       | decide to move in), and lets those who's calculus is different
       | (high value for young urban professionals) move in. Rent-control
       | destroys that efficiency.
       | 
       | Second, it obviously puts a cap on prices and rental returns.
       | Price elasticity of supply is at least somewhat elastic (more in
       | the US than say, the Netherlands, but still). If industry X has
       | fixed prices and industry Y doesn't, ceteris paribus you'd expect
       | most investments in production/supply of industry Y because the
       | returns aren't capped. Rent-control in this sense can limit
       | housing construction, exacerbating the problem further down the
       | line. (This is less applicable to Europe which has more high-
       | density built up areas that are more land-constrained than the
       | US. As such, higher prices don't always translate into more
       | construction, which means the downsides of rent-control are
       | smaller in this respect).
       | 
       | I'm a big fan of rent-control, but it has to be balanced with
       | (partial) incentives. There seem to me some easy mechanisms that
       | should be applied to bring more balance.
       | 
       | 1) Rent-control is not enjoyed permanently, such as in many
       | countries is the case. Instead, one gets 8 years of rent-control,
       | after which you must move, or pay market rate. This brings
       | balance to the current situation where one person has a rent-
       | controlled apartment forever, and another is on a waiting list
       | for 16 years. While de facto forced eviction after 8 years is
       | obviously bad, it's a lesser evil compared to the above
       | distribution of scarce rent-controlled units.
       | 
       | 2) If a rent-controlled unit has 3 bedrooms and you live there
       | alone, you lose some of the rent discounts. It's okay to live as
       | you like, alone or with others. It's not okay to live alone in a
       | home that can house multiple people, and expect others (the
       | government/taxpayer or landlord) to subsidise you, while there's
       | people on waiting lists for decades. We actually have a lot of
       | real estate, in almost all countries the number of people per
       | home has been dropping for decades, while the average home size
       | has been increasing for decades. Yet there is a scarcity of
       | housing, in part because people occupy larger homes than they
       | need. Particularly if the home is subsidised and rent-controlled,
       | that shouldn't be acceptable.
       | 
       | 3) Rent-controlled rates should have market-based foundations. In
       | the Netherlands for example, a rent-controlled unit in Amsterdam
       | or a shrinking village of 500 people, is governed by the same
       | maximum rental rates. Despite the fact that market rates might be
       | 4-5x as high in Amsterdam. It's important to subsidise the poor.
       | It's also important not to take away every single incentive, and
       | create 1 price for a thousand different locations which are all
       | in wildly different demand. If homes in city A and B are priced
       | similarly due to rent-control, but many want to live in A, those
       | who're indifferent to living in city A will occupy homes
       | unnecessarily. If minor price differences are allowed and A is
       | slightly more expensive than B, it'd incentivise those living in
       | A who're indifferent to A or B, to move to B due to the lower
       | prices, freeing up in-demand homes in A. Rent-control is
       | commendable but it should allow for some level of market rates,
       | still.
       | 
       | Hope the post makes sense as some of it is written from an EU and
       | even national/city-level perspective that doesn't apply
       | everywhere in the same way.
        
         | pydry wrote:
         | >Second, the benefits of rent-control take away various healthy
         | market-based incentives. My dad for example lives on welfare in
         | an apartment with 3 bedrooms, by himself in the capital city,
         | and pays 1/3rd of the market rate. He has no incentive to seek
         | out smaller housing which suits his needs just fine.
         | 
         | Whereas if you allow market rate on all apartments you've given
         | landlords collecting rent an incentive to impede all kinds of
         | property development which might bring rents down with
         | NIMBYism.
         | 
         | If they are leveraged landlords who risk going underwater on
         | their mortgage if too much supply comes on the market you've
         | created a veritable NIMBY zealot who will show up to every town
         | planning meeting and throw sand in the gears of new development
         | and vote down every social housing program that might impede
         | supply.
         | 
         | Will your dad? Doubtful.
         | 
         | Rent control wasnt ever a clean, ideal fix (land value taxes
         | are) but they're a band aid solution to rent seeking driven
         | evictions - especially of the frail and elderly.
        
           | imtringued wrote:
           | Speaking of land value taxes, I fully understand that
           | homeowners do not want to be kicked out but there has to be a
           | middle ground.
           | 
           | A progressive land tax would tax owner occupied housing less
           | but then collect the shortfall when the owner sells his land.
           | If for any reason the owner cannot pay, he can apply to defer
           | taxes for 5 years which then result in eviction if the taxes
           | are still due and the property will automatically be upzoned
           | to prevent future evictions.
           | 
           | Land owned by companies does not qualify as owner occupied to
           | prevent share deals.
           | 
           | Property investors will face increasingly higher land value
           | taxes the more land they own in a single location. The idea
           | is that instead of investing in thousands of plots in the
           | same top 10 cities they will have a presence in multiple
           | different cities. This should result in competition between
           | landlords instead of regional consolidation like ISPs have
           | done in the US.
           | 
           | And now the cherry on top. Deduct paid land value taxes from
           | taxable income of the tenant or owner occupant. Finally,
           | lower income taxes across the board and remove the deduction.
           | 
           | Ok, enough about land value taxes. The reason why I
           | personally am against rent control is actually the reason why
           | a minimum wage works. Supply and demand aren't perfectly
           | inelastic. Raising the minimum wage turns the government into
           | a union. But the real question is, who does this hypothetical
           | union serve? People imagine that it will help minimum wage
           | workers but that is just a story to sell the policy. The
           | truth is that it works because the only people impacted by
           | the policy are the poor. Any market distortion that the
           | minimum wage achieves primarily benefits those who are below
           | the previous level. If corporations are cash rich they can
           | simply afford the higher wages so unemployment isn't as big a
           | deal as the theory tells us. The downside of losing jobs that
           | pay less than minimum wage may be overstated because those
           | jobs merely save the government a few dollars on welfare but
           | do not contribute to a meaningful existence.
           | 
           | Now, if a minimum wage has an impact on the poor then who
           | does rent control have an impact on? Rent control is a price
           | ceiling. Who is paying the most for rent? Of course, those
           | who can afford high rents. There are lots of high end
           | apartments that are simply not meant for low income people in
           | which reliable and affluent tenants live in. Yet rent control
           | starts with the most expensive housing first. Poor tenants
           | are usually paying bottom or mid end housing. It doesn't
           | reach them at all. What often happens as a result is that
           | landlords raise rent on low and mid end housing to compensate
           | for losses on high end housing. In my opinion people who
           | advocate for rent control simply do not understand the policy
           | they vote for.
           | 
           | It's a ban on renting in a market that badly needs more
           | rental units.
        
           | gruez wrote:
           | >Whereas if you allow market rate on all apartments you've
           | given landlords collecting rent an incentive to impede all
           | kinds of property development which might bring rents down
           | with NIMBYism.
           | 
           | that assumes rent control actually brings down rents
           | (overall), and landlords aren't baking it into the price.
           | When the government forces landlords to give tenants an
           | indefinite call option on housing (ie. rent control), I doubt
           | landlords are just going to carry on business as usual. The
           | call option has a cost, and that will be incorporated into
           | the cost of future tenants' rents.
        
             | pydry wrote:
             | It assumes only that rent control controls rents.
             | 
             | Are you saying that if landlords are required to enact rent
             | control they have the power to unilaterally raise future
             | market rents in response?
        
               | gruez wrote:
               | > It assumes only that rent control controls rents.
               | 
               | ...for the current tenant. When he leaves it goes up to
               | make up for it, and then some to make up for the free
               | call option.
        
               | pydry wrote:
               | I'm struggling to see why you think landlords would be
               | able to charge above market rate once rent control ends.
               | 
               | (or alternatively, why they would choose to leave money
               | on the table and rent below market rent if they weren't
               | subjected to rent control)
               | 
               | It doesn't make a lot of sense to me that they would
               | (minor exceptions excluded) charge anything _other_ than
               | market rent.
        
               | gruez wrote:
               | > I'm struggling to see why you think landlords would be
               | able to charge above market rate once rent control ends.
               | 
               | It won't be above market rate, but the market rate will
               | go up to account for the call option. It's like if the
               | city mandated all landlords to install AC (assume for
               | this example this is for a region where most units don't
               | have AC). Since this cost is applicable to most
               | landlords, the landlords collectively will raise their
               | rent because their costs have gone up.
        
               | pydry wrote:
               | As far as I can see it's _exactly_ like being mandated to
               | install AC - in that it would not change supply of
               | housing and it would not change demand for housing.
               | 
               | That is, unless there was a non-negligible number of
               | landlords who would be _so infuriated_ with spending,
               | say, $2k on installing AC that they would take their
               | house off the market (but not sell it) and therefore
               | willingly forego, say, $2k of rent every single month.
               | 
               | I don't see that as plausible, though. If you have an
               | unsold rental unit doing nothing but collecting dust
               | you're _wasting_ money. In rent controlled cities like SF
               | /NYC almost by definition rent is high, so these
               | theoretical landlords would be leaving a _lot_ of money
               | on the table so if you think this effect is real you are
               | obligated to assume that these landlords are behaving in
               | an irrational manner.
        
               | leetcrew wrote:
               | the pre-AC prices are already in equilibrium. mandating
               | AC increases the cost of supplying housing, so it
               | disturbs that equilibrium. who actually absorbs that
               | increased cost depends on the elasticity of demand. for
               | highly elastic goods, the producer/seller loses more of
               | their surplus (ie, they cover most of the cost increase).
               | but with a highly inelastic good like housing in a
               | desirable location, it is much more likely that the
               | consumer covers the larger part of the cost increase.
               | 
               | this is basically equivalent to the effect of elasticity
               | on tax incidence. you can view the cost of AC or forgone
               | rent from rent control as a sort of tax.
               | 
               | https://en.wikipedia.org/wiki/Price_elasticity_of_demand#
               | Eff...
               | 
               | another good example of an inelastic good is gas. people
               | who commute can't easily change the amount of fuel they
               | consume. if the gas tax goes up, or a barrel of oil
               | becomes more expensive, your local gas station doesn't
               | just make it up from their margin. they increase their
               | prices, regardless of how accustomed people were to the
               | previous price.
               | 
               | tl;dr: the fact that a landlord can charge more after
               | being forced to install AC does not imply that they could
               | have just increased rent in the first place if they
               | weren't so stupid.
        
               | pydry wrote:
               | What tax incidence is is extremely clear to me.
               | 
               | A careful reading of my previous comment should make it
               | clear that I alluding to precisely that, in fact. Also it
               | was explaining why it would 90%+ fall on the landlord in
               | high rent locales like NYC/SF.
               | 
               | Why you think it shouldn't fall on the landlord in high
               | rent markets just because the supply of property is
               | relatively inelastic isn't so clear to me.
        
               | leetcrew wrote:
               | do you not agree that housing demand in nyc/sf is highly
               | inelastic then? the rest kinda follows from that. or are
               | you arguing that the supply itself is even more inelastic
               | than the demand?
               | 
               | I think part of the problem with this example is that $2k
               | is just not very much money compared to rental income in
               | those areas. I agree, it is hard to imagine landlords
               | dropping out of a market where they can rent a studio for
               | $2500+/month over a one-time $2000 expense. I argue it
               | would still happen at the margins, but it might result in
               | a market rent increase that is below the noise floor.
               | 
               | still, it is a mistake to assume that all HCOL landlords
               | are making money hand over fist. places with high rents
               | tend to also have high price-to-rent ratios. landlords
               | with recently purchased, mortgaged properties might not
               | be making much profit, even with sky-high rents. if a lot
               | of landlords are in this situation, the supply could be
               | surprisingly elastic.
        
               | pydry wrote:
               | >do you not agree that housing demand in nyc/sf is highly
               | inelastic then? the rest kinda follows from that. or are
               | you arguing that the supply itself is even more inelastic
               | than the demand?
               | 
               | Relatively inelastic, but not as inelastic as supply.
               | There are people who would gladly move to NYC tomorrow if
               | rents were cheaper and vice versa.
               | 
               | >I think part of the problem with this example is that
               | $2k is just not very much money compared to rental income
               | in those areas. I agree, it is hard to imagine landlords
               | dropping out of a market where they can rent a studio for
               | $2500+/month over a one-time $2000 expense.
               | 
               | Ergo why the incidence falls squarely on the landlord.
               | 
               | This also explains why they bitch the most about things
               | like property tax hikes and building regs while renters
               | do not care. A double whammy of it hits their net profit
               | _and_ hits the value of their property because it reduces
               | the profit it can generate.
               | 
               | >still, it is a mistake to assume that all HCOL landlords
               | are making money hand over fist.
               | 
               | Right. If they're not it's because they're leveraged in
               | which case there is even LESS reason to suppose that they
               | would be the cause of a drop in supply because instead of
               | not making as much as they could by not renting their
               | apartment out, they'll be LOSING money hand over fist.
               | 
               | I do agree that property _prices_ will likely bake in the
               | cost of having to install aircon or having to abide by
               | rent control regulations. It might be the proverbial
               | "last" straw for some who might sell up but that won't
               | reduce supply because they'll sell it on to somebody else
               | who will rent it out (or live in it).
               | 
               | I also believe that what say may be right in, say, rural
               | Alabama where rent control might well disincentivize the
               | construction of new housing where land is not at a
               | premium. But, NYC is a different kettle of fish.
        
           | rory wrote:
           | > _Whereas if you allow market rate on all apartments you 've
           | given landlords collecting rent an incentive to impede all
           | kinds of property development which might bring rents down_
           | 
           | This incentive still exists if only _some_ of the apartments
           | are market rate, right?
        
             | pydry wrote:
             | Yes, amongst a smaller bloc with commensurately less power.
        
               | rory wrote:
               | Where does the power come from, in your model? Money?
               | Apartments controlled?
        
               | pydry wrote:
               | Political power? Numbers. How else did you think
               | development gets canceled in city planning meetings? When
               | one person turns up out of 70 to impede development or
               | when 50 do?
        
               | rory wrote:
               | Hm I'd never considered that angle. I buy that it is an
               | effect, but I'm not confident it's general or stronger
               | than other effects (often in the other direction).
               | 
               | For instance, in my neighborhood, (market rate) landlords
               | generally _want_ new residential development, because it
               | 's seen as something that will have a gentrifying effect
               | on the area and bring up property values in general. That
               | mentality presumably doesn't apply to neighborhoods that
               | are already rich, though.
        
         | em500 wrote:
         | To make the economics clearer: the Netherlands has a national
         | rent ceiling of EUR737 for social (rent-controlled) housing
         | (and very long waiting lists in all the cities). In Amsterdam,
         | the market rent for a 3 bedroom is probably around EUR1500 to
         | EUR2000 (tough social housing are usually worth a bit less due
         | to somewhat lower quality). Your dad is subsidized in-kind by
         | probably around EUR800/months, but he's forced to consume it in
         | the form of a very specific dwelling which he apparently
         | doesn't value all that much. If he had the choice, he'd
         | probably rather take the EUR800 (or even less) in cash and move
         | somewhere else. But that option is politically infeasible due
         | to the bad optics, even though economically it would be a
         | Pareto improvement.
        
           | standardUser wrote:
           | "If he had the choice, he'd probably rather take the EUR800
           | (or even less) in cash and move somewhere else."
           | 
           | This is how Section 8 vouchers work in the US. But unlike
           | most welfare programs, the vouchers are limited and only a
           | small portion of people who are eligible can get one.
        
         | LambdaComplex wrote:
         | > In a world with ubiquitous housing, there is no need for
         | social housing, because that which is ubiquitous (oxygen) is
         | affordable.
         | 
         | > In a world with scarcity, social housing protects the poor
         | against unaffordability. That's commendable. However, scarcity
         | also means there is not enough for everyone.
         | 
         | And in a world with landlords, housing can be both ubiquitous
         | AND scarce! (At least in the USA, the number of vacant homes
         | greatly outnumbers the number of homeless people in the
         | country)
        
           | saddlerustle wrote:
           | It's a joke to suggest housing is ubiquitous in the US. The
           | number of vacant homes in most metros in the US is less than
           | one year's population growth, and as a fraction of housing
           | stock at historical lows.
        
           | woah wrote:
           | This is a repeatedly debunked myth that does not stand up to
           | the slightest scrutiny.
           | 
           | First, the number of vacant homes. The vast majority of these
           | at any given time are vacant because they are on the market,
           | someone has signed a lease but not moved in yet, or they are
           | undergoing repairs. Of the homes that are legitimately
           | vacant, many of these are in very poor shape, and in areas
           | where no one wants to live. Suggesting that these homes are a
           | solution to homelessness means that you want to send homeless
           | people to live in condemned structures with no running water
           | an hour outside of Detroit.
           | 
           | Second, the number of homeless. The number used in this
           | factoid is only the number of chronically unhoused, often
           | mentally ill homeless. These people need a lot of support and
           | medical treatment. Sending them to live in a random vacant
           | home, much less one with no running water an hour outside of
           | Detroit, is not going to help them. But people spouting this
           | factoid don't actually care about the homeless. They are
           | simply a prop for a cute political point. If you counted the
           | true number of homeless, sheltered, and housing-insecure
           | folks, this dumb factoid wouldn't sound as good.
           | 
           | Third, the entire concept. Vacancies are lowest in the areas
           | in the country with the highest homeless populations. So the
           | entire implication that some evil (probably foreign) real
           | estate investors are causing homelessness is baseless. The
           | reality is that vacancies are mostly associated with how
           | competitive the real estate market is, which is associated
           | with the economic opportunities in an area vs the supply of
           | housing. Higher vacancies means it is easier to find a place,
           | which means that landlords get nervous and drop the rents.
           | There was a very clear demonstration of this in San Francisco
           | during 2020 when a lot of renters left. Rents dropped by 1/4
           | or more, while vacancies rose.
        
           | goodpoint wrote:
           | Correct. Landlording introduces additional competition in the
           | housing market, making buying and renting costs go up, and
           | that's why it's profitable even when a lot of homes stay
           | empty and a lot of people struggle to survive.
           | 
           | Add to that a political system that takes the side of large
           | investors...
        
             | sgregnt wrote:
             | I don't buy what's presented without evidence. But just
             | curious, in your opinion more competition is bad?
        
         | treelovinhippie wrote:
         | Plenty of studies floating around that bust the myth of supply-
         | demand economics when it comes to housing.
         | 
         | It's often the case that excess housing sits empty because that
         | is the logical thing to do if you're treating housing like an
         | investment vehicle.
         | 
         | eg Australia has a population of 25 million and 1 million empty
         | houses according to the last census. And the majority of the
         | population live in cities which rank in the top 10 most
         | expensive housing in the world.
        
       | OneTimePetes wrote:
       | One requirement is to do a "Furbitte" aka a prayer for the fugger
       | so he can get forgiveness and remain in heaven/ leave purgatory.
       | At least that is what i ve heard.
        
         | loeg wrote:
         | It covers this in more detail in the article.
         | 
         | > Original residents of the Fuggerei were asked to offer three
         | prayers a day for Jakob Fugger and his family. ...
         | 
         | > "Jakob Fugger says they have to pray for him. Our
         | administrator always says he is in heaven and will see if you
         | do that. You are responsible for that," said Herzog.
         | 
         | > In other words: that part of the deal is between residents
         | and God.
        
       | ajay-b wrote:
       | It is always helpful when you have a wealthy supporter.
        
       | zaarn wrote:
       | Hey I live just a street down from there. It's an interesting
       | place and Fugger was certainly one of the more interesting people
       | to grace the face of the earth, though it looses it's charm if
       | you see it on your daily commute.
        
       | nanis wrote:
       | > To be eligible to live in the village, applicants need to meet
       | three basic criteria: they must demonstrate financial need, have
       | lived in Augsburg for at least two years and be of Catholic
       | faith. ... checks church registers to ensure they're Catholic
       | 
       | So, standard economics at work: If prices are rigidly set at a
       | low level, there will be rationing. There is the non-price
       | rationing.
       | 
       | > Roughly 160 residents live in the Fuggerei ... there are about
       | 80 people on the waiting list ... applicants could be waiting
       | years for a callback.
       | 
       | And there is the persistent shortage.
        
         | simlan wrote:
         | And your point is ?
        
           | arvindamirtaa wrote:
           | Things cost money.
           | 
           | Things that don't cost to buy at least as much as they cost
           | to make, are not sustainable by definition and will be
           | riddled with systemic problems like shortage, rationing, etc.
        
           | [deleted]
        
           | chongli wrote:
           | I think their point is that this isn't really social housing,
           | it's a perk for a very exclusive group of people. Not all
           | that different from a waiting list for membership to an
           | exclusive golf course.
        
             | true_religion wrote:
             | Exclusive being the community of poeple who paid taxes
             | (i.e. the church tithe) for at least 2 years before they
             | fell on hard times?
             | 
             | It's hardly charity or a perk. It's basically a local
             | government service.
        
           | csomar wrote:
           | It doesn't work even though the article is trying to portray
           | this as a functional model and a solution to the housing
           | crisis.
           | 
           | > Money for maintaining the village comes from investments in
           | forestry, real estate and entrance fees.
           | 
           | It is just a charity with religious requirements.
        
             | SiempreViernes wrote:
             | If shortage means it "doesn't work", it's not clear to me
             | how exclusion based on income is any better, or indeed if
             | these are actually substantially more than just two names
             | for the same fundamental shortage problem.
        
               | gruez wrote:
               | >If shortage means it "doesn't work", it's not clear to
               | me how exclusion based on income is any better
               | 
               | because it provides some sort of objective measure for
               | how badly you want it, and incentivizes/finances more
               | housing developments.
        
               | throwaway2048 wrote:
               | if you are poor, it makes no difference how much you want
               | it if you are fundamentally unable to afford it.
        
               | gruez wrote:
               | You're right. That is a flaw with the free market. A rich
               | person mildly wanting something will outweigh a poor
               | person desperately wanting something. That said, the
               | alternatives aren't much better. A wait list doesn't have
               | any concept of neediness. self-reporting is unreliable
               | (everyone will just say they really want it). A neediness
               | assessment (ie. auditing each applicant's neediness)
               | could theoretically work, but requires time/resources,
               | and still has biases (eg. people with "visible" problems
               | probably will look more needy than someone with hidden
               | ones). Moreover, none of other distribution methods
               | incentivize further supply. A sibling comment covers
               | this:
               | 
               | >What makes dollars unique is that if you inject more
               | dollars into the free market for a good, then ceteris
               | paribus, you will cause more of that good to be produced.
               | Whereas if you injected more bureaucratic know-how into
               | the Canadian patient population, you'd merely cause more
               | intense competition for the same fixed number of
               | physician-hours.
               | 
               | https://news.ycombinator.com/item?id=28367611
        
               | bigbob2 wrote:
               | >What makes dollars unique is that if you inject more
               | dollars into the free market for a good, then ceteris
               | paribus, you will cause more of that good to be produced.
               | 
               | If the video card shortage has taught us anything, it's
               | that this is not always true.
        
               | gruez wrote:
               | I think you need to factor in timeframes here. The demand
               | shock for silicon started less than 2 years ago. The time
               | it takes to bring a fab online is much longer than that.
               | More of the goods will be produced eventually, but the
               | market can't materialize it out of thin air.
        
               | bigbob2 wrote:
               | I certainly hope that is the case, but I remember the
               | Nvidia CEO (it has been a while so things may be
               | different now) saying they would not increase production
               | because they were worried the demand surge was temporary.
               | So long as crypto is profitable I don't see where any
               | amount of production increase is going to stabilize the
               | price. Maybe Ethereum PoS will fix this? Or will another
               | PoW cryptocurrency just take its place?
        
               | cool_dude85 wrote:
               | Ah, my shortages are good, your shortages are bad. Makes
               | sense.
        
               | gruez wrote:
               | I have a feeling you're being sarcastic, but that's
               | exactly what I'm arguing for. If your city only has
               | enough housing for 100,000 people, but there are 150,000
               | people who want to live there, there's going 50,000 who
               | can't get a house. In other words, a shortage. That's
               | bad, but that number is going to be the same regardless
               | of how you're redistributing it. The question then
               | becomes, can we make the best out of a bad situation?
               | Distributing by price has benefits that I mentioned. What
               | benefits does giving giving it for below-market prices to
               | people whoever's first on a waiting list provide?
        
               | dbingham wrote:
               | Except, if you'd ever paid any attention to housing
               | markets in any major city they don't work this way. There
               | are too many other factors and incentives at play. Not
               | least of which is that the profit motive drives
               | developers and landlords to keep costs as high as they
               | possibly can, and they all share that motivation, so you
               | end up with convergent price fixing - where they all just
               | naturally compete on things other than price with out
               | actually colluding to do that.
               | 
               | Markets rarely actually work as advertised.
        
               | luckylion wrote:
               | They do though. It's just that there's so much regulation
               | and other problems that they can't adjust fast enough.
               | 
               | I've lived in Hamburg, Germany, adjacent to an expanding
               | hipster area. Rents rose steadily and every vacant lot
               | was being built upon, industrial zones were repurposed
               | for more housing etc. It's just that that still only
               | gives you a fraction of the apartments you'd need to
               | satisfy demand.
               | 
               | If there was no incentive for investment, I'm sure we'd
               | see even fewer new houses being built, because there's no
               | incentive for the state to move, neither fast nor at all.
        
               | cycomanic wrote:
               | It only works though if income distribution is somewhat
               | sane and people actually buy the housing to live or for
               | renting out. The issue is that a small part of the
               | population is so rich that they can afford many
               | apartments/houses without living in them or renting them
               | out. Those individuals have often enough market weight
               | that they can distort the market all by themselves.
               | Creating an arbitrary shortage to drive up prices for
               | example
        
               | flavius29663 wrote:
               | In the article, if you can't get in, you're out.
               | 
               | In a price defined shortage, there are always
               | alternatives, it's not so black and white:
               | 
               | - you can get a smaller apartment
               | 
               | - you can get a not so nice apartment, but with space
               | 
               | - you can get an apartment further away from points of
               | interest, meaning it's cheaper but you have a longer
               | commute
               | 
               | This is very similar to free market for groceries: in
               | communism you don't get groceries on the shelves. You get
               | them only if you are lucky enough to be around when a
               | delivery is made.
               | 
               | In capitalism, some groceries might be more expensive,
               | but you can always buy cheaper ones, or travel longer to
               | buy from cheaper stores.
        
               | pessimizer wrote:
               | You talk about these options as if they are selection
               | dilemmas rather than an optimization problem, and
               | discussing trading time and effort for price as if time
               | and effort are unlimited resources. If you're going to
               | pretend time and effort are unlimited, why not pretend
               | funds are, also?
        
               | flavius29663 wrote:
               | time is not unlimited, where did I say that? But you can
               | commute 1 hour away and get much cheaper rents in almost
               | any location on Earth. You trade off one extra hour each
               | way for some cash.
        
               | nanis wrote:
               | > exclusion based on income
               | 
               | Exclusion based on price.
        
               | SiempreViernes wrote:
               | No, when there is any housing shortage it is a matter of
               | empirical fact that landlords select on the income
               | prospective renters can prove.
        
             | actually_a_dog wrote:
             | The article made no such claims of being able to solve any
             | housing crisis, merely that 160 people can live in a way
             | they otherwise wouldn't be able to.
        
         | alisonkisk wrote:
         | Not just rationing, but discriminating based on personal
         | benefit to the provider.
         | 
         | This is a soul-buying operation, ironic since Catholics aren't
         | supposed to buy and sell souls.
        
           | javert wrote:
           | Seems doubtful that the patron _actually believed_ that
           | people praying for him would help him in the afterlife.
           | 
           | But maybe I'm totally misunderstanding the medieval mind.
        
             | JackFr wrote:
             | > Seems doubtful that the patron actually believed that
             | people praying for him would help him in the afterlife.
             | 
             | Why does that seem doubtful? There are many people (myself
             | included) who feel that way today.
        
               | javert wrote:
               | Well, I'm aware that there are people that believe this
               | stuff today. But Jakob Fugger, if you actually read about
               | his life, does not appear to have a moral bone in his
               | body in the Catholic sense. That informed my comment. I
               | personally suspect the village was done for show or as
               | some sort of appeasement, not out of genuine faith.
               | 
               | Separately, I don't think we as a society that strives to
               | be rational, should be open to claims of belief based on
               | faith. I think they should be immediately discarded as
               | arbitrary claims. Just an FYI, let's steer away from that
               | particular topic (i.e. the legitimacy of believing some
               | part of Catholic doctrine).
        
             | corpdronejuly wrote:
             | You are absolutely misunderstanding the medieval mind, and
             | many modern religious minds.
             | 
             | Many people today believe in the power of prayer for the
             | dead to help the state of the souls of the departed. Not a
             | majority, but enough that you probably know a few who don't
             | speak about it precisely because of the incredulity people
             | express when people _actually believe_ their religion,
             | especially Christianity.
        
               | javert wrote:
               | Including the people who manufacture the sale of
               | indulences for their own personal profit? Do they
               | _really_ believe in the tenet of having living people
               | pray for the dead? Is the medieval mind capable of such
               | cognitive dissonance? More importantly, is the _modern_
               | mind capable of it?
        
         | eesmith wrote:
         | Is rationing ... bad?
         | 
         | How would raising the rent change the wait time for ground
         | floor housing? By forcing poor people to move out because
         | richer people want to move in?
         | 
         | That doesn't sound like a good thing.
         | 
         | According to standard economics, since there's a demand, why
         | isn't there other, new housing along these lines - where costs
         | are paid for by investments and entrance fees rather than
         | rents?
        
           | kiba wrote:
           | Only 160 residents can live there, which only helps a small
           | amount of people.
        
           | brixon wrote:
           | Since this is not a public service, then no rationing is not
           | bad. In the US, a lot of the homeless shelter are faith based
           | and each only have so many beds to go around each night.
           | 
           | There are not more since someone has to put up the money for
           | the investments. And entrance fees would not likely work for
           | anything new and not novel. Only the government can spend
           | more than it makes.
        
             | asdfasgasdgasdg wrote:
             | I don't think you would be permitted to have a faith-based
             | test for entry into a homeless shelter in the US, though,
             | even if the shelter were faith based. I'm not a lawyer but
             | I've seen enough fair housing act noticed when buying,
             | selling, and renting housing.
        
               | merpnderp wrote:
               | Interesting, but since no money is changing hands I
               | wonder if there are exceptions. I mean I can see some
               | people preferring people sleep on the streets than see a
               | faith-based test allowed to exist, but surely those
               | people's irrationality doesn't prevail?
        
               | asdfasgasdgasdg wrote:
               | I mean, you could ask the same question for a race-based
               | test, and come to the same basic conclusion: that it is
               | "irrational" to prevent it.
               | 
               | I think you have to leave look a little deeper to reach a
               | correct conclusion. Namely: I don't think significantly
               | more free housing would in fact be offered without these
               | regulations. So it would not be rational to allow this
               | type of discrimination. The regulation in essence
               | provides an anchor "price" for free housing, while not
               | distorting the "market" very much. This is a good type of
               | regulation to have.
        
           | nanis wrote:
           | > Is rationing ... bad?
           | 
           | Yes. When a good or service is always available to anyone who
           | can pay the price, all one needs to do is find the money and
           | one can get it.
           | 
           | When prices are set artificially low, both current and long
           | term go down which results in perpetual shortages. Since
           | getting the thing now depends not just on being able to come
           | up with the cash, but relies on the pen of a bureaucrat,
           | corruption seeps in and becomes endemic.
           | 
           | This charity is able to get it done by requiring adherence to
           | a specific religion which serves both as a selection and an
           | enforcement mechanism.
           | 
           | If one is tempted to think of generalizing this, I would
           | recommend reading about both Western socialists waxing poetic
           | about USSR's "solutions" to housing shortages and the reality
           | of housing in the Soviet Union. Unfortunately, city & urban
           | planning programs as well as architecture schools tend to
           | produce a lot of credentialed people who parrot the former.
        
             | jorvi wrote:
             | > Yes. When a good or service is always available to anyone
             | who can pay the price, all one needs to do is find the
             | money and one can get it.
             | 
             | This sounds nice but breaks down because shelter is a human
             | need, it is not a new iPhone.
             | 
             | I am aware that the solution to housing crises is build
             | build build, and that the more profit is in developing
             | housing the more there is being built, but pretending a
             | place to live is like any other common good is cold and
             | wrong.
        
               | luckylion wrote:
               | > pretending a place to live is like any other common
               | good is cold and wrong.
               | 
               | Does it help if you pretend that it's not? Do you get
               | more investments into housing, and in the end, more
               | houses, if you consider housing different from other
               | markets?
        
               | jorvi wrote:
               | I am not pretending anything, I am merely pointing out
               | that shelter, like food an water, is a basic human right
               | (although judging by HNs donwvotes, they'd be fine with
               | starving and dehydrating people as long as someone is
               | making a massive profit).
        
               | luckylion wrote:
               | I think many here disagree with you about it being a
               | human right, because unlike the earlier human rights,
               | it's not "leave people be" at its core, it's "you have to
               | do X for people". If anything, it's a human entitlement,
               | but that doesn't have the same ring to it, I suppose.
               | 
               | And then there's the next part: how good and how much?
               | What's the housing that everyone supposedly has a right
               | to? 100sqft? 500? 1000? And of what quality, and where?
               | Do they get to choose the location?
        
               | guerrilla wrote:
               | > If anything, it's a human entitlement, but that doesn't
               | have the same ring to it, I suppose.
               | 
               | This is nonsense you just made up. Positive and negative
               | rights are both rights, as is common understood in
               | English but especially as defined within political
               | science and philosophy. [1]
               | 
               | 1. https://en.wikipedia.org/wiki/Negative_and_positive_ri
               | ghts
        
               | luckylion wrote:
               | Yes, and positive rights in that context are
               | entitlements. With a right to be housed, you're entitled
               | to a house/apartment/shelter.
        
             | iSnow wrote:
             | But housing doesn't work like this at all.
             | 
             | "all one needs to do is find the money" is the mechanism
             | that keeps some people out of the housing market, or at
             | least makes their lives pretty hard. Middle-class families
             | can find the money, but the poor do not and usually cannot
             | (for whatever reasons) raise their value on the job market
             | enough.
             | 
             | A case can be made for rationed housing at extremely low
             | prices. If you let anyone in, you would get a cash-flow
             | problem and distort the market, but not if you limit it to
             | the poor.
        
               | nanis wrote:
               | > But housing doesn't work like this at all.
               | 
               | The incentives and the price mechanism is independent of
               | the desire of some people to think this or that
               | good/service is "special".
        
             | eesmith wrote:
             | You presume infinite resources.
             | 
             | https://en.wikipedia.org/wiki/The_Wave_(Arizona) has a
             | rationing system.
             | 
             | > Due to the fragile nature of the formation and the large
             | number of people wishing to visit it, a daily lottery
             | system is used to dispense only ten next-day permits in
             | person at the Kanab visitor center. Additionally, ten
             | online permits for each date are available four months in
             | advance of a planned trip.
             | 
             | There will be a perpetual shortage.
             | 
             | This is not a bad thing ... unless you don't care about
             | preserving things for the future.
             | 
             | Do you still think rationing is bad? Or is my example not a
             | case of rationing?
             | 
             | Bavaria is majority Catholic. "Demonstrate financial need"
             | is likely a much stronger selection mechanism.
             | 
             | You didn't answer my question about why, if there's a wait
             | list for this place, and since it's proven to be
             | economically sustainable, other housing isn't built along
             | these lines.
             | 
             | > corruption seeps in and becomes endemic
             | 
             | After 500 years, is the Fuggerei endowment fund corrupt?
             | 
             | Corruption can seep in whenever the person making the
             | decision isn't the person making the profit. Even in a free
             | market.
        
               | sokoloff wrote:
               | It's not obvious to me that this is economically self-
               | sustaining, that is to say it could be recreated starting
               | from scratch today (without the initial grant from the
               | Fuggers).
        
               | gruez wrote:
               | >Bavaria is majority Catholic. "Demonstrate financial
               | need" is likely a much stronger selection mechanism.
               | 
               | According to wikipedia bavaria is only 49.6% catholic.
               | I'm not sure how excluding more than half the population
               | on the basis of religion can be justified.
               | 
               | https://en.wikipedia.org/wiki/Bavaria#Demographics
        
               | eesmith wrote:
               | Then my source is out of date. As your source points out,
               | 10 years ago that was 56.4% -- http://en.wikipedia.org/w/
               | index.php?title=Bavaria&oldid=4369...
               | 
               | My point is that the requirement to demonstrate financial
               | need is likely a significantly stricter criterion than
               | the requirement to be Catholic, so the latter shouldn't
               | be singled out.
        
               | Moru wrote:
               | German Catholic is pretty strong still. Church runs a lot
               | of hospitals and kid/youth things, daycare and so on.
               | They require Catholic employees, they frown upon non
               | married couples and so on.
        
               | nanis wrote:
               | > corruption seeps in and becomes endemic
               | 
               | After 500 years, is the Fuggerei endowment fund corrupt?
               | 
               | I do not know about their internal workings. As I said,
               | in this special case, verified adherence to the rules of
               | a specific religion may help. However, history is filled
               | with examples of catholic clergy dispensing with
               | favorable judgements in exchange for things of value. How
               | do you know if a more "deserving" person was not passed
               | over for someone else who may be had a good connection or
               | promised personal favors etc.
               | 
               | Regardless, I was referring to the situation when someone
               | tries to replicate something which seems to work in a 160
               | person case at a grand scale.
        
               | mattcwilson wrote:
               | Whose definition of "deserving" is most applicable here,
               | and why theirs?
               | 
               | Who is suggesting any intent to replicate this at a grand
               | scale?
        
               | nanis wrote:
               | I prefer not to have to prove that I am deserving
               | according to someone's value system, just that I am able
               | to pay the price.
        
               | eesmith wrote:
               | You implied the corruption was inevitable. Either the
               | endowment fund is corrupt already, or your assertion
               | about 'inevitable' is meaningless.
               | 
               | History is filled with lots of examples of corruption.
               | Including in free markets.
               | 
               | You were referring to the existence of a years-long
               | waiting list, as if it were a meaningful evidence they
               | should raise rents in order to avoid the artificial
               | scarcity you think is universally bad.
               | 
               | Who do you think they should kick out, and why?
        
           | edouard-harris wrote:
           | > Is rationing ... bad?
           | 
           | Economics 101 often fails to convey the crucial fact about
           | rationing: under any rationing system that isn't a pure
           | random lottery, the only effect of rationing a good is to
           | _change the currency in which that good is priced_. [1]
           | 
           | For example, I live in Canada. Our healthcare system is
           | single-payer [2], which is isomorphic to saying that it is
           | rationed. So it would not be accurate to say that your access
           | to healthcare in Canada is priced in dollars. But it would be
           | accurate to say that your access to healthcare in Canada is
           | priced in your ability to navigate bureaucracy, the
           | flexibility of your working hours (to snag last-minute
           | appointments), and your family connections who are embedded
           | in the healthcare system as administrators or physicians.
           | 
           | Depending on your personal values, you might consider it good
           | or bad that access to healthcare in Canada is priced in these
           | units. What makes dollars unique is that if you inject more
           | dollars into the free market for a good, then ceteris
           | paribus, _you will cause more of that good to be produced_.
           | Whereas if you injected more bureaucratic know-how into the
           | Canadian patient population, you 'd merely cause more intense
           | competition for the same fixed number of physician-hours.
           | 
           | That is: by repricing a good in non-dollar units, you've
           | removed a lot of the flexibility that would have allowed your
           | system to _make more of the good if lots of people wanted
           | it_. There are situations when this might make sense to do,
           | and there are legitimate debates to be had around it. But
           | this is the tradeoff you 're making when you ration.
           | 
           | People often mistakenly think that if the price of a good is
           | opaque, then the good must not _have_ a price. This is
           | incorrect. What 's more, if you believe it, then you're
           | almost certainly getting over-charged. And very
           | unfortunately, this mistake tends to be most common among
           | less sophisticated folks -- who are the very folks that
           | rationing was intended to protect in the first place.
           | 
           | [1] And unfortunately, real human-managed bureaucracies are
           | not reliably pure random lotteries, even when they are
           | supposed to _literally be_ pure random lotteries. See, e.g., 
           | https://en.wikipedia.org/wiki/1980_Pennsylvania_Lottery_scan.
           | ..
           | 
           | [2] More accurately, big subsets of our healthcare system
           | operates under single-payer. Many services like eye doctors,
           | dentists, etc. are private.
        
             | [deleted]
        
             | [deleted]
        
             | benlivengood wrote:
             | > Economics 101 often fails to convey the crucial fact
             | about rationing: under any rationing system that isn't a
             | pure random lottery, the only effect of rationing a good is
             | to change the currency in which that good is priced. [1]
             | 
             | Isn't it often worse than that? Unless rationing can be
             | perfectly enforced (e.g. require consumption of the entire
             | resource under observation of enforcers, which is actually
             | most tenable with housing by frequently checking to make
             | sure only the authorized people are present) then secondary
             | grey/black markets form when there is an opportunity for
             | arbitrage.
        
             | tehjoker wrote:
             | So being able to get something after a wait is worse than
             | not being able to access it at all by being priced out?
             | That's a hot take.
             | 
             | Just because something is "priced" in a different quantity
             | doesn't mean that it isn't cheaper or higher quality
             | overall. That requires a more sophisticated argument than a
             | simple observation that there's still some cost.
        
             | SiempreViernes wrote:
             | > the only effect of rationing a good is to change the
             | currency in which that good is priced
             | 
             | This just sounds like an instance of the fact that a
             | sufficiently abstract system of reasoning can be always be
             | forced to described any particular patch of the world.
             | Though typically at the cost of considerable contortions of
             | the terms that makes no sense in other bits of the world.
             | 
             | For example, you may well say that "ability to navigate
             | bureaucracy" is a currency. But it's hard to understand how
             | you put that currency in a bank, in which sense this
             | currency splits into perfectly equivalent units, or how it
             | represents equivalent value at many different physical
             | locations since the specific bureaucrats are tied a
             | specific location.
             | 
             | By the way, picking an _instance_ of cheating as some sort
             | of general argument of why a _specific_ system is not to be
             | trusted is just a straw man, since the problem of cheating
             | is independent on the exchange mechanism. Alternatively,
             | accept this argument: scammers on Amazon prove that free
             | market mechanisms don 't reliably give a fair price.
        
             | Pet_Ant wrote:
             | > you've removed a lot of the flexibility that would have
             | allowed your system to make more of the good if lots of
             | people wanted it
             | 
             | Only if they were capable of paying for it as well. That is
             | a big assumption for something as expensive as healthcare.
             | 
             | I personally find it very comforting that (at least at in
             | principle) both the rich and poor wait in the same line.
        
               | gruez wrote:
               | >I personally find it very comforting that (at least at
               | in principle) both the rich and poor wait in the same
               | line.
               | 
               | That's rarely the case. For stuff like consumer goods
               | (ie. getting the iphone on launch day, a few years ago)
               | the rich person can buy it off a scalper, or pay someone
               | to stand in life for them. For healthcare they can just
               | fly to a private clinic.
        
               | setr wrote:
               | >pay someone to stand in life for them
               | 
               | Recently I learned you can even do this for the DMV...
               | Truly the only place where men are made equal is the
               | porcelain throne.
        
               | therealdrag0 wrote:
               | There's a lot of ways in which the cost of healthcare in
               | US is inflated due to restrictions and monopolies. Don't
               | form an opinion on the premise that healthcare is
               | intractable expensive.
        
               | nanis wrote:
               | Also, keep in mind that the current U.S. health insurance
               | system is a by-product of the government trying to
               | control the price of labor.
        
             | dbingham wrote:
             | > What makes dollars unique is that if you inject more
             | dollars into the free market for a good, then ceteris
             | paribus, you will cause more of that good to be produced.
             | 
             | Markets don't actually work this way in practice. That's
             | the theory, the theory rarely actually pans out. We could
             | look at US healthcare, which is an insane mess, but it's
             | pretty easy to argue that it's not actually a market due to
             | insurance and opaque pricing and all the same problems.
             | We've kind of got the worst of all worlds over here. But
             | dental and vision care, which are closer to real markets
             | don't actually work any better. They're still expensive, in
             | accessible, and pretty non-responsive to price signals.
             | 
             | Instead, take something like food, where it's a commodity.
             | That's a place where markets should be the cleanest and
             | most responsive to price signals. We produce 1.6x the
             | amount of food the world needs. And food is some thing
             | where there's a literal cap on the ability of any
             | individual to consume it. Our stomachs are only so big,
             | there's literally only so much each of us can consume in a
             | day. By market theory, prices for food should be almost
             | negative and no one should be with out food given those
             | facts. But that's not how it works out. As always, there
             | are too many confounding factors and the profit motive
             | causes rent seeking at every layer.
             | 
             | By market theory, there should be over production of food,
             | which should cause everyone to have food and food producers
             | to drop out of food production until prices rise to
             | equilibrium where everyone has food and the people
             | producing food have a good living.
             | 
             | Has that happened anywhere? No. Instead, you have
             | corporations standing between producers and eaters finding
             | ways to make food more expensive through value add and
             | marketing. You have producers struggling to get by, buried
             | under a mountain of debt, and often effictively in
             | indentured servitude to the processors. And you have
             | hundreds of millions of people food insecure, tens of
             | millions even in a rich country like the US that massively
             | overproduces food. Because markets in real life don't work
             | according to the theory.
             | 
             | And that's why we can't just approach economic problems
             | with the idea that we can just throw more markets at them.
             | And why we have to think about when systems like single
             | payer, for all their faults, are better than what we'd end
             | up with through markets.
             | 
             | Trust me, if you'd ever had to deal with the American
             | health care system, you would long for the Canadian one.
        
               | gruez wrote:
               | > We produce 1.6x the amount of food the world needs.
               | [...] By market theory, prices for food should be almost
               | negative
               | 
               | Can I get a source for the 1.6x figure? I suspect it's
               | 1.6x _on the field_ , but doesn't factor in losses in
               | transport/processing. By the same logic, we generate
               | 110%[1] the amount of electricity that the world demands
               | (at the power plant, 10% is lost due to transmission
               | losses), therefore electricity prices should be negative
               | as well.
               | 
               | [1] https://blog.se.com/energy-management-energy-
               | efficiency/2013...
        
               | nanis wrote:
               | > Instead, take something like food, where it's a
               | commodity. That's a place where markets should be the
               | cleanest and most responsive to price signals.
               | 
               | There are a whole lot of distortions on every side of the
               | market for food which interfere with a properly
               | functioning market. There are incredible subsidies paid
               | to farmers to produce specific things (which then cause
               | over-production in those items). There are tariffs to
               | protect privileged farmers. There are actual import and
               | sometimes export quotas. Then, rich countries dump the
               | over-production as in-kind food aid to poor countries
               | undermining poor farmers there.
               | 
               | Case in point is Nebbia v. New York[1] where the supreme
               | court affirmed state interference in free markets by
               | setting a price floor on milk to protect a select few
               | milk producers.
               | 
               | Going back to my first comment. The mechanics are clear.
               | An effective price ceiling leads to too few units being
               | offered relative to the units demanded resulting in
               | perpetual shortages and non-market mechanisms end up
               | determining who gets the benefits of the existing units.
               | Persistent price ceilings lead to chronic reduction in
               | investment producing the thing.
               | 
               | Similarly, effective price floors (minimum price of milk,
               | minimum wage etc) lead to too many units being offered to
               | the market leading to persistently wasted productive
               | resources.
               | 
               | Both reduce the total productive capacity of an economy.
               | 
               | [1]:
               | https://www.law.cornell.edu/supremecourt/text/291/502
        
               | dbingham wrote:
               | But that's the point. There are always going to be
               | distortions. And only some of those distortions come from
               | the government. Perfect markets _don 't exist_ and _can
               | 't exist_. They don't line up incentives as advertised,
               | the incentive for the producer to take as much as
               | possible from the consumer drives all kinds of insane and
               | harmful unexpected behavior. And market competition
               | doesn't keep that incentive in check as the theory holds,
               | because all producers share the same incentive and their
               | interests align. Government distortions are sometimes
               | self serving as you've pointed out, but just as often
               | they are attempts to counter act the distortions created
               | by the markets themselves.
               | 
               | Economic theory has never been predictive to any
               | reasonable margin of error. And a theory that cannot
               | predict outcomes is not a valid theory.
        
               | nanis wrote:
               | > Perfect markets don't exist and can't exist.
               | 
               | Even diamonds are not perfect.
               | 
               | Perfection is good to have in models to demonstrate
               | limiting cases, but not necessary to know the difference
               | between situations where prices are allowed adjust and
               | where prices are not allowed to adjust.
               | 
               | The "markets are not perfect" crowd loves to imagine the
               | existence of a "perfect" and benevolent social planner
               | who will always act according to their wishes. Let me
               | know when you find one. (I know, "#realsocialism never
               | been tried).
               | 
               | > Economic theory has never been predictive to any
               | reasonable margin of error. And a theory that cannot
               | predict outcomes is not a valid theory.
               | 
               | I find it ironic that you make this statement in the
               | context of a clear cut demonstration of what happens when
               | prices are not allowed to adjust.
               | 
               | There are a zillion markets across the world where one
               | does not need to depend on the benevolence of the
               | proprietor to get what you want or the benevolence of the
               | customer to earn a living. Those get conveniently
               | ignored.
               | 
               | If price controls worked so wonderfully, Uber, which was
               | only an improvement on what was there before it and
               | nothing close to "perfect", would not have become so
               | popular. I would have loved for them to run a continuous
               | double auction, but then nobody every gave me a billion
               | dollars to burn.
               | 
               | > distortions created by the markets
               | 
               | By definition, distortions are created by interventions
               | in markets.
        
             | bcrosby95 wrote:
             | > People often mistakenly think that if the price of a good
             | is opaque, then the good must not have a price. This is
             | incorrect. What's more, if you believe it, then you're
             | almost certainly getting over-charged. And very
             | unfortunately, this mistake tends to be most common among
             | less sophisticated folks -- who are the very folks that
             | rationing was intended to protect in the first place.
             | 
             | Note that this is one of the problems in the US too. Health
             | care prices are pretty opaque, it definitely has a price -
             | which you'll find out after you get something done, and I
             | would argue people get overcharged - evidenced by the fact
             | that insurance companies can come in and slash the bill to
             | a fraction of what it was (literally saying "you aren't
             | allowed to charge this much").
        
         | [deleted]
        
         | kiba wrote:
         | Yeah. This is not really social housing.
         | 
         | It does makes me wonder how low the price of social housing can
         | go while still being sustainable either to be subsidized by the
         | government or payable by tenants.
         | 
         | Land use policies, that is transportation and housing makes up
         | about 30% of the cost in the average American budget, which
         | suggests living in America is pretty expensive.[1]
         | 
         | 1. https://www.valuepenguin.com/average-household-budget
        
           | hef19898 wrote:
           | Well, it is considered the oldest social housing offering in
           | the world.
        
           | cies wrote:
           | Came to the same conclusion that "catholics only housing"
           | cannot be social housing...
        
             | asdfasgasdgasdg wrote:
             | I wonder how strictly they check up on your mass
             | attendance. I'm not sure the ethics of lying to pass an
             | unethical religious-based test for housing, but it strikes
             | me that there must be at least one resident that is not as
             | dedicated to the church as most.
        
               | cies wrote:
               | Still not very social if its "catholics only". That
               | they're checking on your church attendance makes it all
               | feel very bigbrothery to me.
               | 
               | Non the less cool they manage to keep prices down: much
               | lower than actual social housing operated by govt.
        
               | tsbischof wrote:
               | It could be as simple as checking tax records: in
               | Germany, tithing is incorporated directly into tax
               | declarations and payroll systems.
        
               | nanis wrote:
               | > Social worker Doris Herzog is the first point of
               | contact for most applicants. She checks church registers
               | to ensure they're Catholic and interviews them on their
               | living situation.
        
           | zaarn wrote:
           | Will point out that this housing is hardly sustainable, it's
           | paid for from the remainders of Fugger's wealth (he is the
           | richest man in the world, accounting for currency changes and
           | inflation) as well as donations from the church (probably in
           | order not to be dragged to court for late debt payments, the
           | church borrowed a lot from Fugger).
        
         | dbingham wrote:
         | Those things happen in markets with price signals too.
         | Rationing and persistent shortage are happening in housing
         | markets around the world broadly.
         | 
         | It's kind of a given that any social housing like this is going
         | to have a limited number of rooms. And as a result, only so
         | many people will be able to live there.
         | 
         | That's not some clear proof of market theory. Because the other
         | half of market theory - about how price signals drive behavior
         | of rational actors - doesn't hold up.
        
           | thebean11 wrote:
           | Do you have an example where rationing is occurring without
           | price controls? I don't have experience outside of the US,
           | but in the two US markets with probably the biggest housing
           | shortages (SF, NYC, maybe Austin nowadays?), if you give me
           | 8k a month I'll find an apartment tomorrow.
        
             | lakis wrote:
             | Good luck going to Mount Athos
             | https://en.wikipedia.org/wiki/Mount_Athos#Access Money is
             | not an issue. But unless your a man, you can't get in,
             | period. Oh, you mean you want to live there. No problem,
             | just change your religion. "Residents on the peninsula must
             | be men aged 18 and over who are members of the Eastern
             | Orthodox Church and also either monks or workers"
        
               | nanis wrote:
               | > Good luck going to Mount Athos
               | 
               | OK, so here we once again have a situation where the
               | price mechanism is not allowed to operate. For a moment,
               | I thought this was a private gated community in San
               | Fransisco.
               | 
               | > Mount Athos (/'aethas/; Greek: Athos, ['a.thos]) is a
               | mountain and peninsula in northeastern Greece and an
               | important centre of Eastern Orthodox monasticism. It is
               | governed as an autonomous polity within the Hellenic
               | Republic. Mount Athos is home to 20 monasteries under the
               | direct jurisdiction of the Ecumenical Patriarch of
               | Constantinople.
               | 
               | Oh, another religious membership test.
               | 
               | How is this at all pertinent to the functioning of the
               | price mechanism? Especially when it is government
               | enforced?
               | 
               | > Although Mount Athos is legally part of the European
               | Union like the rest of Greece, the Monastic State of the
               | Holy Mountain and the Athonite institutions have a
               | special jurisdiction which was reaffirmed during the
               | admission of Greece to the European Community (precursor
               | to the EU).[5] This empowers the Monastic State's
               | authorities to regulate the free movement of people and
               | goods in its territory; in particular, only males are
               | allowed to enter.
               | 
               | https://en.wikipedia.org/wiki/Mount_Athos
        
             | syshum wrote:
             | It is also unfair to blame market prices for the situation
             | in NYC and SF as largely the price increases and shortages
             | are driven by insane zoning and other regulations that
             | makes building, maintaining, and turning over housing near
             | impossible.
             | 
             | That is not market forces, that is government controls
        
         | jka wrote:
         | Are there any statistics on the number of units of livable
         | accommodation in the world, per country?
        
           | nanis wrote:
           | Define "livable accommodation".
           | 
           | That aside, in the U.S., there is
           | https://www.census.gov/programs-surveys/ahs.html
        
             | jka wrote:
             | Thank you very much - I think that shows that (for the US):
             | 
             | - in 2015 there were an estimated 118,290k housing units
             | 
             | - in 2017 there were an estimated 121,560k housing units
             | 
             | - in 2019 there were an estimated 124,135k housing units
             | 
             | (note that the majority of these -- more than 70,000k in
             | each case -- are single, detached houses)
             | 
             | Those are quite useful starting factors - roughly one
             | housing unit per three persons in the population, and
             | roughly 5% growth in capacity over four years.
             | 
             | The next few steps would be to match those against
             | population and property price trends, check for
             | correlations, and perhaps narrow and regionalize the data
             | to look for any notable outliers.
             | 
             | (not sure when I'll get to those, but it'll be a good
             | learning experience I'm sure)
        
       | bellyfullofbac wrote:
       | Ah, Mr. Fugger, richest man in the world, the Catholic Church
       | borrowed so much from him (and fleeced their followers so much in
       | order to pay him back) that Martin Luther got so mad and nailed
       | his manifesto to a church door and created Protestantism:
       | 
       | https://nypost.com/2015/07/26/meet-historys-richest-man-who-...
       | 
       | I wonder if his name is the origin of the swearword...
        
         | spywaregorilla wrote:
         | What swear word?
        
           | 52-6F-62 wrote:
           | "That Fugger kicked me out of the housing project because I
           | missed my last 3 eucharists"
        
             | zip1234 wrote:
             | According to the wikipedia article, the last name was
             | actually spelled "Fucker"
        
               | [deleted]
        
               | lioeters wrote:
               | Indeed!
               | 
               | > The founder of the family was Johann Fugger, a weaver
               | at Graben, near the Swabian Free City of Augsburg. The
               | last name was originally spelled "Fucker".
               | 
               | > The first recorded reference to the family comes when
               | Johann's son, also named Johann (or Hans), moves to
               | Augsburg in 1367, with the local tax register laconically
               | noting _Fucker advenit_ , "Fugger has arrived".
               | 
               | https://en.wikipedia.org/wiki/Fugger_family
        
               | FabHK wrote:
               | > Fucker advenit
               | 
               | Strikes me as an excellent name for a Christian rock
               | band.
        
               | spywaregorilla wrote:
               | He looks like bezos
        
         | bernardom wrote:
         | The book The Richest Man Who Ever Lived is riveting. The guy
         | bankrolled kings, wrote a collections letter to the Holy Roman
         | Emperor, etc. etc.
        
           | prox wrote:
           | Who are the bankrollers of today? Do they still exist?
        
             | jdavis703 wrote:
             | They are nation-states and multinational corporations with
             | market values that exceed the GDP of smaller countries.
        
               | adventured wrote:
               | > market values that exceed the GDP of smaller countries
               | 
               | Revenue that exceeds the GDP of nations.
               | 
               | Walmart = $566 billion. Good enough for #25 among
               | nations, larger than Nigeria or Thailand, just below
               | Belgium and Poland.
               | 
               | Amazon = $443 billion. Equal to #30 among nations. Nearly
               | identical to Israel or Norway, and ahead of the
               | Philippines or Egypt.
               | 
               | Berkshire Hathaway = $365 billion. Equal to #40 among
               | nations. Comparable to Singapore or Vietnam, just below
               | Denmark.
               | 
               | Apple = $347 billion. Equal to #41 among nations. Larger
               | than Pakistan, Finland, Chile and just below Bangladesh.
               | 
               | CVS = $278 billion. Equal to #48 among nations.
               | Comparable to Czechia and larger than Portugal, New
               | Zealand.
               | 
               | UnitedHeath = $270 billion. Equal to #49 among nations.
               | Just below Romania or Colombia.
               | 
               | Google = $220 billion. Equal to #52 among nations.
               | Comparable to Greece or Peru.
               | 
               | Microsoft = $168 billion. Equal to #56 among nations.
               | Just below Hungary or Kazakhstan, ahead of Ukraine or
               | Algeria.
        
               | zaarn wrote:
               | For comparison, Fugger's net worth today at the peak
               | would have been 400 billion $. Not revenue, net worth.
               | 
               | Also keep in mind that revenue is not market value nor is
               | it wealth/net worth.
        
         | lqet wrote:
         | > At the time of his death in 1525, Fugger's personal wealth
         | was equivalent to 2% of the GDP of Europe. [0]
         | 
         | [0] https://en.wikipedia.org/wiki/Jakob_Fugger
        
         | morpheos137 wrote:
         | St. Peter's Basillica wasn't cheap.
         | 
         | What Luther was specifically mad about was selling indulgences
         | (certificates of forgivness for certain sins) to pay off Church
         | debt.
        
           | coldcode wrote:
           | Indulgences were not the big money maker for people at the
           | top, it was selling benefices that made Popes and other
           | church leaders rich, i.e. selling Church offices for huge
           | sums (hey you want your nephew to be a Bishop or Cardinal,
           | sending in X ducats). Why fleece poor people when you can
           | fleece the rich, they have all the money.
        
             | dmurray wrote:
             | Well, yeah, but you wanted your nephew to be a bishop or a
             | cardinal not just for the prestige, but because he could
             | sell or rent lower positions in his own diocese, or collect
             | indulgences himself. It's feudalism all the way down.
        
           | throwaway14356 wrote:
           | are those transferable assets? i want one to mix in with the
           | framed diplomas
        
         | belter wrote:
         | "To be eligible to live in the village, applicants need to meet
         | three basic criteria: they must demonstrate financial need,
         | have lived in Augsburg for at least two years and be of
         | Catholic faith."
         | 
         | Is this legal? I mean the faith part...
        
           | RuggedPineapple wrote:
           | Absolutely. The German constitution mandates students be able
           | to obtain religious education in public school as part of
           | regular curriculum, prohibits the government from interfering
           | in any religious organization and mandates that the
           | government collect member tithes as part of tax collection
           | for any religious group registered as a PLC at their request.
           | 
           | The ruling party of Germany is expressly religious, the
           | Christian Democratic Union. There's religious pluralism in
           | Germany and all religions have the same benefits, but the
           | idea of what those religions may do is not so intuitive from
           | us in North America.
        
             | belter wrote:
             | But besides the money collection there are also the tax
             | exemptions right? It looks lovely...
             | 
             | "The foundation deed specified that the housing complex was
             | to exist "in perpetuity" and to be "further developed." The
             | philosophy behind it can be summarized as being to "provide
             | assistance, not charity, to people in need so they can help
             | themselves." There are a total of nine foundations
             | established by the Fugger family in Augsburg that have been
             | in continuous existence since the 16th century. In addition
             | to the Fuggerei, there are medical facilities, an
             | infirmary, and a foundation to contribute to the salvation
             | of the Fugger family, among others. According to an
             | inscription on a tablet displayed at the Fuggerei, the
             | Fugger family established the foundation to "reimburse God
             | the money that he has generously bestowed upon the family."
             | 
             | "Paupers or beggars are not eligible. A person that has
             | been accepted for residence is required to say three daily
             | prayers for the Fugger family"
             | 
             | https://blogs.loc.gov/law/2021/08/500-year-anniversary-of-
             | th...
             | 
             | Its going for a long time:
             | https://en.wikipedia.org/wiki/Fugger_family
             | 
             | And many foundations: https://www.fugger.de/en/foundations
             | 
             | I am sorry ...the business man in me...every time I see the
             | word foundation I see only one thing. Only business vehicle
             | where you are tax exempt... while at the same time still
             | benefiting from the foundation assets.
             | 
             | "Forget about the Gates Foundation. The world's biggest
             | charity owns IKEA -- which is not only devoted to interior
             | design."
             | 
             | https://medium.com/@jurgeng/ikeas-tax-scheme-a-corporate-
             | str...
             | 
             | https://ikeafoundation.org/
        
             | hnbad wrote:
             | > all religions have the same benefits
             | 
             | That is true in theory but not in practice. To be
             | recognized you need to be organized as a _Korperschaft
             | offentlichen Rechts_ which isn 't exactly trivial. In
             | practice the Catholic church and the "Evangelical church of
             | Germany" (a confederation of various mostly independent
             | parishes, mostly Lutheran) are the two big ones and
             | everything else barely passes as a rounding error (e.g.
             | there seems to be only one Muslim organization and while
             | they reflect a sect mostly originating in Turkey, they're
             | hardly the largest Muslim sect in Germany).
             | 
             | Also for example the two primary public broadcasting
             | channels ARD and ZDF have a Catholic and Lutheran bias
             | (although this mostly manifests in a handful of very short
             | theological opinion pieces paid for by the respective
             | churches and clergy of the two religious orientations being
             | invited every time ethical concerns are discussed).
             | 
             | Saying "all religions have the same benefit" is a lot like
             | saying all people are equally forbidden from sleeping under
             | bridges regardless of their income. It's not exactly an
             | equal playing field and a lot of the influence of the
             | churches comes down to not just the number of registered
             | members but also feudal property rights and pre-existing
             | contracts (e.g. the Catholic church is one of the few
             | entities that legitimately "owns" land in Germany whereas
             | normally legal subjects are only granted "ownership"
             | conditionally).
             | 
             | And let's not get into public sector institutions like
             | hospitals and schools being operated by one of the two
             | churches and personnel being subject to church labor laws
             | while the majority of the operating costs (in some cases
             | even 100%) are footed by the state.
             | 
             | We only call it pluralism because Martin Luther was
             | successful. Much like our so-called federalism (because
             | Germany was still a lose collection of functionally mostly
             | independent states until around the time of the American
             | Civil War) it's really more of an accident of history that
             | we later rebranded as something desirable.
        
             | dnh44 wrote:
             | Regarding the church tax, if you move to Germany you'll be
             | ask what religion your are and unless you answer atheist
             | you'll have to start paying a church tax and it appears to
             | be quite a hassle to get out of it.
             | 
             | https://www.settle-in-berlin.com/stop-paying-german-
             | church-t...
        
               | hef19898 wrote:
               | You declare not being part of an officially recognised
               | church, not being atheist. Muslims don't pay these taxes
               | as these is no recognised Islam "church". Getting out is
               | easy, depending on where you live. It took me about 10
               | minutes, signing a paper at the Standesamt, and out I
               | was. Got a nice letter from "my" community priest giving
               | me a chance to rethink that while threating me with hell,
               | pretty directly so.
        
               | ant6n wrote:
               | It's Corona, there's no Standesamt available (no joke).
        
               | alex_young wrote:
               | The same system exists in Switzerland. While living
               | there, and after registering, a priest visited my home to
               | investigate our nonbeliever status. My spouse
               | inadvertently mentioned her Jewish ancestry, at which
               | point the priest offered to send a Rabbi instead, before
               | she could say that she wasn't then and had never been
               | observant.
        
               | Tomte wrote:
               | > and it appears to be quite a hassle to get out of it.
               | 
               | Five minutes at the local courthouse, 20 Euros or so, and
               | it's effective next month.
               | 
               | Of course, during Corona it can be more difficult to get
               | an appointment, and the fee can vary from state to state,
               | but all in all it's easy to get out.
        
               | belter wrote:
               | "Church tax in Germany is a 8-9% surcharge on top of your
               | income tax."
               | 
               | That is a stunning amount. I wonder how many Berlin based
               | Startup Developers are having a second look at the salary
               | receipt right now...
        
               | harimau777 wrote:
               | At least in Christianity, 10% is the traditional donation
               | to the Church. So that doesn't necessarily sound out of
               | line. On the other hand, some people split the 10%
               | between the Church and secular charities which wouldn't
               | be possible in this case.
        
               | leipert wrote:
               | Slight clarification here, it is way less than 8-9% of
               | your gross salary. I had a look when I was a church
               | member, and it was 2% of my gross salary. It was indeed
               | 8% of the amount of my income tax.
               | 
               | I think the way it is calculated (depending on the
               | federal state your in): Gross salary -> income tax -> 8
               | to 9% of the income tax = church tax.
        
             | belter wrote:
             | I am sorry but I have a follow up question maybe you are
             | able to elaborate as you mentioned: "There's religious
             | pluralism in Germany"
             | 
             | Scientology has an IRS tax exemption in the US as another
             | religion, but it seems in Germany the state has made their
             | life quite difficult. Does German law provides for a clear
             | specification of how to define a religion?
        
               | fy20 wrote:
               | Side note, Jedi is the fourth largest religion in the UK.
               | I wonder if Disney have considered registering it as an
               | official religion to lower their tax bill there.
               | 
               | https://en.wikipedia.org/wiki/Jedi_census_phenomenon
        
               | joecool1029 wrote:
               | >Scientology has an IRS tax exemption in the US as
               | another religion, but it seems in Germany the state has
               | made their life quite difficult.
               | 
               | Scientology's founder has been quoted as saying: "You
               | don't get rich writing science fiction. If you want to
               | get rich, you start a religion." German courts have
               | argued that because of this (and the organization's
               | behavior after he died) that it's actually a for-profit
               | business organization masquerading as a religion.
               | 
               | EDIT: I probably should add that the US is rather extreme
               | amongst nations worldwide in that it does tend to
               | recognize personal conviction rather than only shared
               | dogma/tradition as a form of 'religion'. It's unlikely
               | but I could see the organization losing tax-exempt
               | status. Even if this happened, the individuals couldn't
               | be prohibited from practicing what they believe is a
               | religion.
        
               | wahern wrote:
               | The US never affirmatively recognized Scientology as a
               | legitimate religious organization. Rather, Scientology
               | fought a prolonged, dirty war with the IRS and came out
               | the victor when the IRS decided to settle. Because of
               | anti-tax sentiment that daemonizes the IRS, the IRS
               | doesn't have the stomach for prolonged battles that play
               | out in the media. The public is too credulous when the
               | defendant invariably plays the Samson & Goliath card.
               | (Trump has also successfully used this technique. I once
               | had a law professor who worked on an IRS case against
               | Trump, and he had some interesting stories--not to
               | mention strong opinions--regarding Trump's business
               | practices. Actually, anyone of means caught in the IRS'
               | cross-hairs will use this technique. But you have to be
               | particularly bellicose, as in the Scientology and Trump
               | cases, to flagrantly violate tax laws with the intention
               | of taking the IRS to the mat.)
               | 
               | It's also worth pointing out that, unlike some other
               | countries, the US doesn't really have a formal system for
               | recognizing religious organizations. AFAIU, the closest
               | thing we have is the IRS adjudicating in the first
               | instance Federal tax exemption status. Otherwise, as a
               | general matter, a religion is as a religion does, and
               | it's usually up to agencies, municipalities, and
               | ultimately courts to decide on a dispute-by-dispute basis
               | whether an organization, group, or person is owed the
               | benefit of some particular religious exception in law.
        
               | ordinaryradical wrote:
               | They defined Scientology as a pyramid scheme (rightly)
               | because of its "pay for revelation" business model.
               | 
               | Probably not the most meaningful example as Scientology
               | had to be pretty egregious to get disqualified.
        
               | belter wrote:
               | You will not find an advocate of Scientology in me :-))
               | But you will find an advocate of equal treatment under
               | the law and the rule of law.
               | 
               | Apparently members have stronger restrictions than those
               | applied to persons who express extreme right views:
               | 
               | "Scientologists in Germany face specific political and
               | economic restrictions. They are barred from membership in
               | some major political parties, and businesses and other
               | employers use so-called "sect filters" to expose a
               | prospective business partner's or employee's association
               | with the organization."
               | 
               | https://en.wikipedia.org/wiki/Scientology_in_Germany
               | 
               | I am just trying to check who are the committees who
               | define what is an acceptable religion, how and under what
               | legal framework.
        
               | weswpg wrote:
               | in your quote, it says that private businesses and
               | political parties are making these decisions. that's
               | likely done as part of their regular screening processes.
        
               | belter wrote:
               | So...If a business would decide to screen a candidate for
               | the their Muslim or Jewish faith that would be what?
        
               | belter wrote:
               | As I said, not defending Scientology here at all, but
               | from the wikipedia article found this case interesting:
               | 
               | "In 2019, the Munich Labor court sided with the director
               | of personnel of Haus der Kunst, a well-known artistic
               | museum. He had been removed from his position after
               | working for 22 years because it was discovered that he
               | was a Scientologist. The case was settled and the
               | director of personnel was paid 110,000 euro as severance
               | and received a full pension. Many Germany courts also
               | ruled the legitimacy of Scientology as a religion. In
               | 2019, Ahmed Shaheed and Fernand de Varennes who were UN
               | Special Rapporteurs on freedom of religion and on
               | minority issues wrote to Germany that, "discriminating
               | against those who profess a certain belief is illegal
               | under international human rights law, irrespective of
               | whether the belief is religious or merely philosophical
               | or cultural."
        
               | klyrs wrote:
               | That sounds pretty fair to me. It's one thing to punish
               | an individual for having a belief; it's another to give
               | an organization a tax break for a Ponzi scheme based on
               | that same belief.
        
               | Tomte wrote:
               | In the case of political parties: they decide themselves.
               | The large parties all have lists of clubs and informal
               | organizations where membership is incompatible with party
               | membership.
               | 
               | (No major party allows membership in another party,
               | except european sister parties in other countries, but
               | it's possible, and some smaller parties allow it)
        
               | gruez wrote:
               | > They defined Scientology as a pyramid scheme (rightly)
               | because of its "pay for revelation" business model.
               | 
               | but "pay for indulgences" is fine?
        
               | AlotOfReading wrote:
               | The direct sale of indulgences has been prohibited by the
               | Catholic church since 1567. I don't think it's very
               | relevant here.
        
             | cat199 wrote:
             | > the idea of what those religions may do is not so
             | intuitive from us in North America
             | 
             | .. pretty sure you can set up religious sponsored/focused
             | housing in NA as well
        
             | cycomanic wrote:
             | Despite (or maybe because? ) of all of this religion plays
             | a much smaller role both in everyday life as well as
             | politics compared to the US.
        
               | Barrin92 wrote:
               | It's exactly because of it. This cooperative system gives
               | the state significant control over the church, which was
               | the original reason for this sort of semi-public funding.
               | German priests are trained in public universities and the
               | state has influence on the curriculum. Them most extreme
               | form of religions you will always find outside of the
               | system.
        
             | MomoXenosaga wrote:
             | It has been argued that the complete implosion of
             | Christianity in the Netherlands was due to the creation of
             | a welfare state.
             | 
             | The Church was replaced by an irreligious state and that
             | was it.
        
           | vxNsr wrote:
           | Why not? You can do that in the US too.
        
         | dahart wrote:
         | > I wonder if his name is the origin of the swearword...
         | 
         | Interesting thought, but I don't think so. The F word predates
         | Mr Fugger. https://en.wikipedia.org/wiki/Fuck#Early_usage
        
           | lqet wrote:
           | Wiktionary lists as an interesting possible origin of the
           | German equivalent "ficken" the sound it makes when two things
           | rub against each other ("fffppp, fffppp, fffppp"). [0]
           | 
           | [0] https://de.wiktionary.org/wiki/ficken
        
         | stronglikedan wrote:
         | > I wonder if his name is the origin of the swearword...
         | 
         | Maybe it was his mother.
        
           | giardini wrote:
           | "Mother Fugger'?
           | 
           | How canst thous speak thus?
        
         | coldcode wrote:
         | Luther did not first nail his thesis to the door, he mailed
         | them first, and had no intention of starting anything. Nailing
         | things to a church door was common practice so that others
         | could read things (no newspapers). Also Luther was only one of
         | thousands of priests, bishops and monks who complained the
         | Popes at the time were ignoring the faith and the people (which
         | they were). He didn't invent Protestantism, he's just more
         | famous than the others.
        
           | javert wrote:
           | Complaining to the Pope is not equivalent to taking the
           | further enormous leap of breaking away from the Catholic
           | Church.
           | 
           | I don't know the history and would love for someone to fill
           | me in, but I'm just not convinced that you are right to
           | downplay Luther's role.
        
           | dredmorbius wrote:
           | Luck is a key component in success.
           | 
           | That doesn't mean success, or those who succeed, aren't
           | successful. Or don't serve as icons for the movements or
           | initiatives they are known for.
           | 
           | There are many flaws with the Great Man theory of history.
           | But reflexive rubbishing of it serves little use either.
           | 
           | Better is to have an understanding of what factors
           | contributed to a breakthrough. And if that is chance, luck,
           | timing, or a coincidental confluence of factors including
           | emergent technologies, then yes, give those credit.
           | 
           | Real history is complex. It doesn't fit on postcards. Any
           | less-than-comprehensive account is a map, not the territory.
           | 
           | Maps remain useful.
        
           | AlanSE wrote:
           | I just finished reading this book, and the point I'm making
           | comes almost directly from that.
           | 
           | https://www.twelvebooks.com/titles/patrick-wyman/the-
           | verge/9...
           | 
           | Luther grew up in a mining community, where people where
           | crass and confrontational. He had a frank, direct, and
           | powerful rhetorical style that was forged in that
           | environment. While he had several career options, a lightning
           | strike made him get superstitious and become a monk. He was
           | good at it. Take these 2 things - book smarts and an
           | argumentative edge, and now a new twist enters the story...
           | 
           | The printing press!
           | 
           | The printers were in it to make money. His impact on history
           | wasn't nailing a thing to a church door. The guy ran circles
           | around the Church defenders because he replied quick,
           | effectively, and he was the darling of the printers who
           | controlled the medium.
           | 
           | It's not just about having the best argument, it's about
           | fitting the format of the medium. Luther would deliver
           | retorts in the space and time frame that the printers wanted.
           | You can easily imagine how this would drown out the defenders
           | of the Church (especially since it's salacious) and impact
           | public opinion.
           | 
           | But that phase only lasted so-many years. Before long, the
           | situation got out of his control, and that's kind of when you
           | might say Protestantism started.
        
             | krsdcbl wrote:
             | today you could very well say he was a media-savvy
             | influencer
        
             | 1123581321 wrote:
             | That explanation is fun, and not exactly wrong, but there
             | were many factors brewing, and attempts at just about every
             | part of what we call the Reformation had been attempted on
             | some level in the hundred years preceding except perhaps
             | the allied states' standard against the HRE. Most acute
             | factors were probably the combination of the financial
             | crisis, simony, absent bishops, Medici cultural and
             | political influence over Rome, peasant revolts and prior
             | attempts at schism or reformation, discontent between
             | German princes and HRE, increasing prevalence and
             | affordability of printing which promulgated new
             | understandings of Aristotle and Augustine in addition to
             | enabling more widespread publication of dissent. It's a
             | rich topic, certainly worth reading extensively about; I'll
             | be sure to check out the book you linked.
        
             | Archelaos wrote:
             | > and now a new twist enters the story...
             | 
             | > The printing press!
             | 
             | Not quite so new. At the time Luther published his 95
             | Theses in 1517 the printing press with movable types has
             | been around pretty much as long as the computer has been
             | around for us in 2021: for three quarters of a century.
        
               | est31 wrote:
               | And we are _still_ not done computerizing society.
        
       | h0nd wrote:
       | 1EUR to live there for a year. 6.5EUR to visit once.
       | 
       | What is going on there?
        
         | martin_a wrote:
         | The Fuggerei is really nice to visit and walk around. There's
         | also a little museum house so you can have a look inside one of
         | the rather small houses and a permanent exhibit in the old
         | bunker of the Fuggerei.
         | 
         | Keeping it up and running is cross-financed by the entry fees.
         | 
         | Also the 1 Euro is not the whole truth. Residents will have to
         | pay so called "Nebenkosten" (auxillary costs) for electricity
         | etc. like with any other flat.
         | 
         | Compared to Augsburgs rent levels it's still very cheap to live
         | but I'd prefer not to do so.
         | 
         | Source: Lived down the street for a few years.
        
       | ginko wrote:
       | What's with all the completely unrelated keywords in the article
       | link?
        
         | Tomte wrote:
         | My guess: the poster did a copy&paste mistake (the URL up to
         | the last / is valid and shows the Afghanistan article), but the
         | CMS used by CBC only looks at the last part, so it's still
         | successful.
        
           | Bootvis wrote:
           | It's just how the site works, not a mistake by OP. If you go
           | to the Afghanistan article and click to the link to the
           | article you'll get the link that was posted to HN.
           | 
           | I'm not sure why the previous page is tracked like this but I
           | guess they have their reasons.
        
           | [deleted]
        
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