• Maggoty@lemmy.world
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    4 months ago

    The house isn’t creating new wealth. The new wealth was created elsewhere in the system and used to pay for the house. The value of the house going up isn’t the same thing. Now if you use the increased value of the house to back a second mortgage, that’s when you’re creating wealth. But you’re doing it through the fractional reserve banking system, whose entire job is to create wealth by loaning out copies of money.