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Free Fall

 It is common to read about how Gen Z cannot afford to buy homes despite rising salaries. Kids right out of college are making more than my generation did ten years into the workforce. While we were able to raise a family on that money and save enough to buy a home, these kids are not able to do so. It was interesting to read about Singapore having 90% homeownership - such a remarkable contrast. 

It involves the government play a very active and forceful role in driving that outcome, the kind of thing that would be viewed as unacceptable interference in America. The question is - what is the better outcome for a generation. Should they be free to do as they please with their money (which is not true even in America) or should they be guided by the heavy hand of government to have baseline stability. 

Many Singaporeans are able to afford a home, thanks to a mandatory government savings program called the Central Provident Fund.

Working residents below the age of 55 are required to put 20 percent of each paycheck into their CPF account. Employers must contribute another 17 percent.

That money is then distributed into three different buckets -- for housing, healthcare, and retirement -- with generous interest rates of up to five percent.

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