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Real estate reflects falling morality

(China Daily)
Updated: 2009-11-26 07:50

Yu Bin, head of macroeconomic research department of the Development Research Center, under the State Council, recently said China's realty sector had become the country's economic lifeline. If this is true, then it is dangerous and pathetic both, says an article in Qilu Evening News. Excerpts:

Economist Yu Bin has said that a steady real-estate market could prove fatal to China's economy in the coming years.

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This reminds us of what another famous economist, Yi Xianrong, said in 2004. Yi warned that the realty sector would one day threaten China's overall economy. To back his statement, Yi said that skyrocketing housing prices had tied the interests of local governments and the people to the country's economy.

In case the housing market faces problems, recession would hit people much earlier than they could imagine.

Regrettably, Yu Bin's analysis now shows that Yi was right. Historically, it has been very risky to have the realty sector as a country's pillar industry. Exorbitant housing prices will force people to tighten their belts, or squeeze money out of them and bring about irrational growth of the economy.

Housing prices are being raised not according to the law of demand and supply, but on speculation. Traditional human relations and moral standards have vanished into thin air, as is illustrated by the popular TV serial, Dwelling Narrowness.

The female protagonist, Guo Haizao, is a "professional" paramour. But apart from sympathy, which she should get, she also draws envious comments on the Internet. This reflects declining morality in society and the harsh reality of our times. The realty market is thriving on the same twisted morality principle: It doesn't matter what you do as long as you make money. This is pathetic.