On Wednesday, January 7, President Trump sent out two messages via social media: First, that he was “banning institutional ownership of residential real estate.” Later, that he was “outlawing return of capital to shareholders.” The Warren/Sanders/Mamdani wing of the Democratic Party is celebrating. The Reagan/Hayek/Laffer wing of the Republican wing is scratching its head.

Today, David goes back to the utterly incoherent idea that institutions putting investment into residential real estate (all 0.4 percent of the single-family residences this represent) is behind the affordability issues. He reminds listeners what “supply-side” growth means. And he does a quick refresher on capital formation, and how capital is needed to innovate, and that how capital gets treated is somewhat relevant to that process. It’s a plea to remember first principles when it comes to economic policy, and why we have spent a lifetime rejecting this Marxian drivel.

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The new mayor of New York City is praising collectivism and urging optimism for what it can do. Many freedom lovers want to give a history lesson to the mayor about the 20th century’s horror of collectivist failures around the globe. But in addition to those needed history lessons, New Yorkers are welcome to their own current rent laws and the debacle they have created for those who claim to want more affordable rent options. In the first episode of Capital Record this new year, David explains how bad policies with good intentions do the same damage that bad policies with bad intentions do, and uses a real-life policy illustration to demonstrate why collectivism has always failed.

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Are exclusive deals of private companies for select investors exacerbating the divide between haves and have-nots? Or is there an entirely different lesson in the fact that there are substantially fewer public companies than there used to be? Is this a class struggle issue, or rather, a by-product of certain unavoidable realities combined with unintended consequences of policy decisions. Put differently -- are there some trying to have their cake and eat it, too?

Show notes:
Inside the Invitation-Only Stock Market for the Wealthy

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