A graduate tax would be much better.
Easy, just don't be most people
I think you could make the same statement about home loans. It used to be, that the average home price was between 3x and 3.5x times the average salary in any given area (in the US). As an example: In Nevada, people didn't make much money - so the average house was about $25,000 to $30,000 (this is in about 1971). On Madison Ave (NYC), people made much more - so an average flat was about $700k to $900k. When i bought my house in 1971, i paid $37,800 for a 3 bedroom, 1.5 bath house on 1/4 acre with a one car garage. That same house today, would list for $320,000 The neighbourhood consists of plumbers, construction workers, cops, etc. The wives drive school buses, work as secretaries, etc. When i took over my house, i assumed the original loan on it. Since i paid about $22,000 as a down payment, my monthly payment was the same as the original owner. This amounted to $257.90 per month. To buy an equivalent house today, if you made a down payment of say 10% TO 20% - you would have a loan balance of about $270,000. This would require a monthly PITI payment [principal, interest, taxes & insurance] of about $2300 to $2600. Your total house payments over the year would be about $31,200 [the price of my original house]. In order to make such a payment, the couple living in the house would need a combined income of about $200,000 per year (before taxes). I don't know where you get people that can come up with that much money in basically a blue collar community. I notice that nearly all the vacant houses now, are either being rented out (at about $2800+ a month), or are inhabited by 12 to 18 people, who usually speak Spanish (or another language not English). You can tell this, because the houses are surrounded by 10 to 15 ragged vehicles. I don't know who is going to buy the McMansions that are a few miles down the road. They are in the $500,000 to $1,500,000 range. The US is rapidly getting into the housing situation that the Uk has been in for a number of years. Good luck to all of us, i fear we will need it!! Cheers.
I think everyone is ok with this to an extent? Otherwise we wouldn't go?