Here's When Landlords Will Collapse the Economy (And How)
The cold hard math on the end of the nation as we know it
“The landlords, like all other men, love to reap where they never sowed…”
— Adam Smith
As many of you know, this former landlord (of four units) has been preaching a fact for over six years now:
That landlords are taking over the economy and will inevitably collapse the economy.
It’s inescapable math:
Banks would rather lend to a real estate investor than a local working family, because a.) landlords can afford to pay more (because they’ll be reaping rents) and b.) landlords are more likely to repay the bank (using rent money. Does anyone think the average working family will still have a job 25–40 years in the AI-dominated future?)
Landlords outbid would-be homeowners. They then maximize their gains from the rental unit, and use the profits to outbid more would-be homeowners for houses.
Rinse and repeat, compounding their exploitative gains until the masses own nothing and are forced to pay more in rent to stay sheltered than they would’ve to own, had landlording been banned and/or landlords been banished to the moon.
The more workers are forced to pay to stay sheltered, the less they can spend on everything else, which destroys jobs, which destroys more jobs, which destroys more jobs. The end. Landlords win. (And then usually get hung or beheaded — sometimes both — when the revolution starts.)
Here’s the fun part:
Someone just ran an economic model and proved this thesis.
(Not that we needed to run a simulation. We could just look at all of economic history.)
Right now, it takes 12 years of wages to buy a house in the U.K. The simulation started with 1,000 houses, 1,000 housing units, 3% population growth, and a few other conservative factors.
They ran the simulation.
By turn 100…
it took 25,640 years of wages to buy a house
rent constituted 99.5% of the GDP
the landlord/renter wealth gap was 5,058X
If you understand this, this should be all you need to hear to outlaw for-profit landlording immediately.
If you still want to keep landlording, then we need to talk about beheadings again…
Because the simulation folks also calculated a Revolutionary Pressure Index.
As landlords take over an economy and life becomes unbearable for workers, revolutionary pressure rises as in a pressure cooker. Eventually, things explode. They have no choice — workers and their children will literally die if they can’t force the government to reform landlording.
You can actually calculate a revolt probability. For instance, no one is revolting if jobs pay well, housing is affordable, and the cost of living is easily attainable for the vast majority. But if you’re paying 80% of your income for bread as French labourers did in 1788, get ready for the French Revolution.
Right now, the U.K. is around 48 on the Revolutionary Pressure Index, roundabouts the 1929 Weimar unrest phase. (Leading to Hitler becoming Chancellor in 1933.)
When the Revolutionary Pressure Index hits 80 (at turn 78 in the simulation), revolt is all but guaranteed and landlords get crushed.
The author of the piece thinks this will happen in 2028.
Best case scenario, we’re 20–30 years from total national collapse.
What you can do
At the government level, we just need to tax for-profit landlording out of existence. It’s that simple. No financialization of housing, no investors holding shelter hostage at the cost of human life.
There are important things you need to do, too:
Stop being part of the problem. Sell your rental properties, real estate stocks and bonds, and banking stocks and bonds right now.
Do everything you can to help others get out of renting and into home stewardship before things get significantly worse.
Never throw away your vote by voting for establishment political parties.
Share this article with a landlord and/or a tenant.
For those interested, you can check out the simulation results here.
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