Can housing construction solve the rising unemployment

To read the original version of this comment in the original context at Macrobusiness.com.au click this link. (link maybe locked – but there is a free trial available)

The catch with housing construction as an employment solution is that if it actually works it will put enormous pressure on the monetary policy debt machine model as house prices soften under the increased supply.

The idea that the extra housing supply can be soaked up by house hungry migrants is wishful thinking as those migrants will come looking for jobs.

We cant all get jobs building houses.

Now a possible solution is that we all get busy building houses for foreigners that remain empty and thus do not push down house prices and thereby imperil the bait rate driven debt machine.

Does that sound familiar?

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