Economics growth Essay
Government should provide more affordable housing wet Guy #0233240 In contemporary society, the average income growth rapidly in China, but people’s lives is still puzzled by a vast number of issues. For example, housing problem is one of the most serious problems which affect all over the world, especially in China. However, average income for people growth rapidly, there is still a vast number of people do not have abilities to buy a house. Therefore, we should figure out how we can tackle the task at hand right now.
Should government provide affordable housing or people or not, it is tough question, because someone will agree with that government should provide affordable housing, but there is still a great amount of people will against that. In my report I will give a brief conclusion which one is better. Firstly, we should understand what is affordable housing? It is government provides money to real estate developers to build construction, and finally sell to low- income families as a relatively low price.
Affordable housing is usually considered affordable if it costs less than 30 percent of gross household income. (Housing NEWS, 014). As we know that China has a large amount of population in
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Another 300-400 million are expected to be added to China’s cities in the next 15-20 years. ” Those figures provide that more and more people want to living in cities rather than village. Therefore, it will cause the lack of house and also cause the price of housing increased. As a result, a large group of low-income families cannot afford a house, especially in some big cities, such as Beijing, Shanghai, and Sheehan. Hence, government should provide some affordable housing for low-income families in order to help them to solve housing problem. Esther Fungi, 2013) found that “Beijing has a plan about catering to migrant workers, who have not been able to buy low-incomes under China’s restrictive housing- estimation, and have also been priced out of the existing private-housing market. ” Afterwards, to speed up arbitration is main force to improve Chinese economy in the future. However, if Chinese government implements the arbitration, relative poor people will go into city, they cannot afford the housing.
So, lack of affordable housing in the cities will block the arbitration and also will affect the Chinese economy increase. As the evidences above, some people will agree with that government should provide affordable housing. However, does affordable housing really help low-income families? I do not think so, actually, affordable housing not really helps the low-income groups to solve the housing problem. In another word, it only improve the living standard of middle- income families, the low income families still do not have abilities to afford a house.
For instance, the price of affordable housing in Beijing is around RHOMB per around two hundred thousand ARM. The cost of a small house for a low-income family is hard to imagine, so they simply cannot afford to buy the affordable housing. As a result, government did not achieve their purpose which is helping low-income to solve house problem. Moreover, some economists think that affordable housing is suitable for developed country, because there is only a few of relative poverty population in developed country.
Chinese economy increase rapidly, but China is still a developing country, and the per capital income is relatively lower. Therefore, China has lot of people who lived low-income families. In addition, China has a large amount of population. More people crowded into less space are not a good ambition in any locality. Large population will cause the lack of housing. Therefore, if government wants to solve housing problem for every poor people, they would spend a great deal of money on building affordable housing.
The last reason is that affordable housing is relatively cheap, but the quality of the affordable house is also relatively poor. Therefore, maybe in the future the quality of house is too bad and nobody wants to live in here, so it will become a construction waste. (China Daily, 2010) provide that housing for low-income residents, a good thing the government goes, could turn out to be a bad thing, if not enough attention is paid to the quality of the buildings and not enough concern paid to the quality of life for the resident.
The demolition of six such building still under construction because of poor quality in Begging’s suburban Taxing country is an example. Therefore, government should not provide affordable housing for society, because it will bring more negative effects than positive. All in all, there is a vast number of ways to help low-income families to solve the housing problem in order to have a better life. Government provides affordable housing is a way to resolve the housing problem in China, but it is not the best for in society.