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Instead of artificially giving out loans to people who can't afford mortgages, tax breaks could go out to construction companies to develop smaller homes. The average house size has doubled since 1950 but families are smaller. There's no reason a starter home needs to be worth half a million dollars.
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The free market tends towards mild deflation - except when the government gets involved like education and Healthcare. You can buy a PS5 & Switch for the equivalent of a 1980 Atari console if you adjust for inflation. There's no need for minimum wage spikes if the government policy would stop pushing for 2-5% annual inflation
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College is so expensive because the demand is outstripping the supply thanks to government loans & scholarships. Most people should never go to college unless studying law, medicine, STEM or possibly some humanities and finance.
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On housing. We have a government imposed central bank that effectively prints up money and loans into real estate through subprime. That has forced everybody to treat their homes like a savings account, and caused people to zoning-law the cities to death to make real estate completely out of reach for the average person. Even in the 50's, the average low end working class man could afford a home for his family and have it paid off in 10 years.
Same thing with college. It used to be high school graduates could get a readily available minimum wage job during the summer, and pay their way through college all expenses paid.
As for health care, how come high quality free market health care in Singapore costs 10% of what health care in the USA does. While their government requires health care savings accounts, notice how people there are not clamoring for socialized health care?
In sum, it's not even a mystery how the free market would work here. It is, or already has as a matter of fact.