Society needs government housing subsidies to remedy the housing shortage.
"But the rulers in Sweden realized 100 years ago that access to a good home was a prerequisite for a good life, when the state started subsidizing housing construction. And not only in Sweden, but also in the market-liberal USA. The economic boom of the 50s and 60s was also spelled out by government housing subsidies. We will land there again if we want to solve the housing crisis. The problem is that then the housing price bubble will be punctured."
Source: https://www.gp.se/ekonomi/vi-har-en-boprisbubbla-d%C3%A5-kan-den-brista-1.45493699
Effective with government housing subsidy
State housing subsidy is self-financing. But then countries with their own central bank can take over the loans. It's just printing new money. You can introduce the law that the USA has that whoever leaves their home leaves the loans. Then we have to regulate the granting of loans so that we don't get the same bob bubble again. Then the largest single-family houses may be converted into multi-family houses.
But why did we end up in this situation with a house price bubble. Well, our money-making model is called save-in-the-barns, neoliberalism or austerity policy. It teaches that the state should not create money. The private sector must do this by people taking out loans from banks. How do we get people to take enough loans so that the money is enough for the industry's financial needs? Well, by making housing a scarce commodity that we can speculate about in the search for somewhere to live. State housing subsidy is a way of building away neoliberalism.
Read "The deficit myth” by economist Stephanie Kelton on the universal wealth-creating power of nationally controlled and owned central banks.
Modern monetary theory
The book deals with Modern monetary theory. It shows that as the economy grows, the government must run a deficit in order for the economy to continue to grow. Taxes just redistribute old money. When the economy is to grow, new ones must be produced by the state taking on debt with itself. If we increase productivity by building housing, we can afford a government housing subsidy program.
If the government does not run a deficit, the private companies and private households will have to.
Only two accounts
The opposite of an account lien is that someone else owes you a debt. Since there are basically only two accounts in an economy, the public account and the private account, surpluses in the public account correspond to deficits in the private account and vice versa. The private account, unlike a state backed by a national central bank, can go bankrupt. Then government deficits go more to public utilities and empirical evidence shows that government deficits have a greater economic drive for society. Therefore, it is better if the government runs a deficit instead of the private account. A healthy deficit is a to program to build housing with government housing subsidy.
So that the state runs a deficit to get housing construction started and to save us from a financial crash is the only way in the long run.
The limit to how much money we can print is that it must not exceed the growth rate of the national economy and employment so that it becomes inflation. But Kelton shows with a lot of empirical evidence that there is usually no inflation.
If the government prints money to take over the private housing claims, the loans are only transferred from the private account to the public account. There will be no net supply of new money to the economy and thus no increased risk of inflation.
We can afford work projects
So the government can tap into deficits to afford a government housing subsidy program by launching public work project with the aim of stimulating the economy in society. Then the new money is linked to increased productivity.
The risk of inflation is greater if money is printed without the amount of work, products and services simultaneously increasing.
But if the state runs a deficit for public projects, there is no problem expanding the economy in this way,