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العربية
Excessive rents suffocate both society and the economy.
How?
After completing a property construction, there is no new product.
True, real estate, whether land or building, is very important, but its social and economic importance is similar to the importance of building foundations that support everything above it: productive people, industrial and production tools, display and storage locations, transportation and delivery tools, etc.
However, real estate is one of the pillars of production factors in the economic cycle alongside ideas, management, and human resources.
This is where the role of real estate itself begins and ends.
That’s why rental income is classified as unearned income because it comes from a service that doesn’t manufacture and sell a product. Renting is the process of taking money for a service that doesn’t create a new product.
In some investment circles, a building or rent is sometimes metaphorically called a “product”.
Money and currency in the social, productive, and economic concept is a tool, not an end in itself.
What’s happening in Kuwait is that the real estate element and foundations have become a means of extortion and draining money from other elements and everything above them, despite the foundations remaining unchanged.
In fact, its cost has increased at very high rates that exceed its weight within the elements of production and economic cycle, whether the property is storage land, a building made of clay or beryl.
This drain directly reflects price inflation, accompanied by the slow disappearance of activities, poor product quality, disappearance of workshops and industries, deterioration of other services, along with declining workforce quality.
It is also accompanied by an “abundance” of currency among a small group and the decline of local, and possibly national, output, with deficits at the macroeconomic level.
