Sunday, April 10, 2016

Proof that capitalist system is flawed

Green Party mayor candidate Sian Berry has a point when she says that the present model for providing so-called affordable housing, as housing at a rent or price below the going rate, isn't working as it is based on signing "big deals with developers".

These deals have to allow the property developers to make a profit but the more below-market-rate housing the mayor requires them to provide in any project the less their profit. So there are limits as to how far they can be pushed. 

If they aren't allow to make enough profit they will just walk away. 

Not enough profit, no production. That's the way the capitalist system works and why it should be replaced by a society based on common ownership and democratic control, which will allow production, including of houses, for use instead of for profit.

Socialist Party candidate GLA South West constituency.

No comments: