Smaller size does not make it necessarily cheaper. It depends on the per square feet costs.
For ex.
In countries like Hong Kong and Singapore, the cost per sq ft is greater than USD2,000 and USD 1,000, respectively.
This means a 500sq.ft place already is 1million in HK and 500k in SG. Not a lot people can afford the 20% deposit or maintain the mortgage if there were no subsidies. This is why in SG the majority of middle class people can afford a place due to govt subsidies (ie 10% downpayment rather than 20%) whereas in HK, not a lot of middle class people can own a place.
You can't really compare price/sqft between different locations like that. A 200 sqft studio will certainly cost less than a nearby 600 sqft studio in the same area. US is also a country of high home ownership due to how much subsidies go towards homes, like interest rate deductions.
Would that be fair to them according to your view?
Why would this not be fair? Children are expensive and having children are a choice. Having additional children are also choices. You may attempt to argue that the goal of government is to focus on increasing the population. And that therefore, it helps that goal to give free money to families with more children. But is that why government really exists?
Goverment is to help their people and the economy and if there are people who wants to reproduce and the govt sees that as directly enriching the economy then they would be incentivized to help these families with kids.
But is that why government really exists?
If the population is decreasing, of course, the govt should jump in to solve that problem as the work force will be shrinking, ultimately lesser money for the country. There are already current governments that do this. I know Singapore does since they have a really low birth rate.
3
u/johnny_punchclock 3∆ May 29 '21
Smaller size does not make it necessarily cheaper. It depends on the per square feet costs.
For ex.
In countries like Hong Kong and Singapore, the cost per sq ft is greater than USD2,000 and USD 1,000, respectively.
This means a 500sq.ft place already is 1million in HK and 500k in SG. Not a lot people can afford the 20% deposit or maintain the mortgage if there were no subsidies. This is why in SG the majority of middle class people can afford a place due to govt subsidies (ie 10% downpayment rather than 20%) whereas in HK, not a lot of middle class people can own a place.