CDZ What Adversely Affects US Economic Quality Control?

Discussion in 'Clean Debate Zone' started by william the wie, Apr 8, 2017.

  1. Picaro
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    Picaro Gold Member

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    No, they didn't. The average person of my grandparents' era would never have seen such a thing as a 'home mortgage' of the types we see today, and most wouldn't have qualified for one, much less for one at anything like 25 years. They would live at home or in a crappy apartment or house of some type and saved for a lot and then built a small starter home, and added on to it over the years; if they needed to borrow they would borrow from relatives or take out a small building loan of maybe 3 years max, with what they already had as collateral. Home loans, essentially a consumer loan, are a fairly recent invention. The 'middle class' in my grandparent's day was very small, so most were getting by by saving and paying as they went.

    Most of the loans available came from real estate developers themselves, not banks or mortgage companies. These weren't really loans, they were just payment plans for the lots and houses.

    Check Out These Mortgage Rate Charts from the Early 1900s | The Truth About Mortgage.com


    Of course the catch is such long term loans double or triple the cost of the house. they were designed to lower the monthly payments, is all. And with jobs these days even for the employed requiring moving about every three years on average, only idiots will commit to such terms.

    You can root around over at NBER for more info, maybe EHnet as well.

    The National Bureau of Economic Research
     
    Last edited: Apr 15, 2017
  2. william the wie
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    william the wie Gold Member

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    Balloon mortgages were also big 1900-30. Grandpa was a contractor and my other other grandfather was a cotton buyer. I've been in both their homes. They were originally about 500 sq. ft and were added onto by successive buyers. But the yards were measured in acres to help the kids build a house when they got married.
     
  3. Dekster
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    Dekster Gold Member

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    I am not sure what you mean exactly. Are you talking about product quality control? If so, then it is because it is easier and cheaper to replace something than it is to have it fixed usually. Part of that has to do with the rising cost of labor, and part of it has to do with the expanse of competition keeping costs relative low on the goods people most often replace. Let's take my dishwasher. no doubt it is original to the house built in 1980. Still works fantastic. If I were to buy a new one, I would be lucky to get five-ten years of it. The new ones are too high tech and hi tech is not made to last because they want you coming back for a new one in 5-10 years.
     
  4. william the wie
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    william the wie Gold Member

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    Paying higher prices for lower quality is becoming an ever bigger problem as in the defective California mandated toilets are worth much less than the old style toilets. I don't know how that works out long term but I suspect that 3-d printers will make assembly line, planned obsolete products a thing of the past.
     
  5. Xelor
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    Xelor Gold Member

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