Having experienced this kind of policy in Australia; it’s great in theory - but the issue is that builders/sellers just ended up jacking up the prices of their homes to absorb the grant.
Watched the same thing happen on a smaller scale back when analog TV broadcasting was phased out and we got vouchers for digital TV tuners in America. They all cost around $25 or less. As soon as the vouchers were given out, the prices doubled to $50
Surely this is a well studied phenomenon with a name, right?
No. Inflation is a general increase in price/decrease in buying power per dollar. This is specifically about one class of item increasing in cost to absorb a government subsidy, especially when that subsidy was meant to alleviate a cost to the citizen.
Having experienced this kind of policy in Australia; it’s great in theory - but the issue is that builders/sellers just ended up jacking up the prices of their homes to absorb the grant.
Watched the same thing happen on a smaller scale back when analog TV broadcasting was phased out and we got vouchers for digital TV tuners in America. They all cost around $25 or less. As soon as the vouchers were given out, the prices doubled to $50
Surely this is a well studied phenomenon with a name, right?
Pretty sure this is inflation
No. Inflation is a general increase in price/decrease in buying power per dollar. This is specifically about one class of item increasing in cost to absorb a government subsidy, especially when that subsidy was meant to alleviate a cost to the citizen.