Welcome to Rye Country Day's Economic Blog. Here you will find perspectives by students taking Economics at Rye Country Day School. It is meant to be a forum where students can openly express their ideas and take positions on relevant economic issues. I urge everyone to participate in presenting their own ideas in an open manner so that we can all learn from each other. Regardless of whether you are currently taking Economics, everyone is invited and encouraged to comment on articles and get involved. Feel free to e-mail me, Alex Osborne at email@example.com , with comments or suggestions.
Tuesday, January 9, 2007
Featured Entry - Housing Depreciation in U.S
I would like to discuss the recent depreciation in housing costs in the
. After the country reached a point where houses were overvalued, the prices have started to drop. The main reason for this price drop is that the demand for new housing is not meeting the enormous supply that has boomed in recent years. The depreciation of housing prices also has its effects among the people of the country and the economy as a whole. Since the values of people’s homes are decreasing, the individual feels less wealthy, and therefore, is less likely to spend money. This causes the economy to recede. In this way, the decrease in housing price lowers the total consumption of the American people. United States