Learn 50+ Years of Economics in Only 7 Weeks, by applying here: https://www.stevekeen.com

(Plus get Ravel — the economic visualization software used in this video — as a bonus if you’re accepted and join.)

Top Economist Steve Keen breaks down again why Australia has become one of the hardest places on earth to afford a home and why bipartisan “help-to-buy” style policies keep fanning the fire. Using long-run data and Ravel demos, Steve shows how bank-created mortgage credit, not “shortages” alone, pushed the price-to-income ratio from about 4.5× in the 1970s to ~12× today, and outlines three concrete fixes that would finally bend prices down.

In this video, you’ll discover:

✅ The affordability cliff: rent surges and house prices outpacing wages for decades

✅ Why “sustainable price growth” is code for locking out younger buyers

✅ How banks actually create mortgage money and why that inflates asset prices

✅ Textbook myths: loanable funds vs. the real double-entry mechanics

✅ Government deficits 101: why spending creates deposits and reserves (and why that’s not a crisis)

✅ Credit cycles: when mortgage debt accelerates, house prices accelerate

✅ Three solutions that could work: PILL, an Affordable Housing Authority, and a Modern Debt Jubilee

Key insights:

• Price-to-income blew out from roughly 4.5× to about 12×, you cannot fix that with token grants.

• New mortgage credit is the dominant source of housing demand; its acceleration maps to price growth.

• Politicians obsess over public debt while private debt (households especially) is the real macro risk.

• Deficits aren’t the villain; unregulated mortgage leverage is.

• To restore affordability you must curb leverage, not turbocharge it.

Want to learn 50 years of real economics in 7 weeks?

Apply to Steve’s Seven-Week Rebel Economist Challenge: https://stevekeen.com

Bonus: Ravel access is included for accepted students who join.

What do you think should policy target lower prices via leverage limits and public lending, or keep chasing “sustainable growth”? Drop your thoughts below.

Who is Dr. Steve Keen?

Dr. Steve Keen is an economist known for accounting-consistent, data-driven models showing how bank money and private debt drive booms, busts, and asset bubbles. Creator of the Minsky and Ravel tools, he replaces classroom myths with operational mechanics — essential for engineers, finance professionals, and anyone who wants clarity over ideology.

Learn 50+ Years of Economics in Only 7 Weeks, by applying here: https://www.stevekeen.com

(Plus get Ravel — the software used in this video — as a bonus if you’re accepted and join.)

#HousingCrisis #AustraliaHousing #Affordability #MortgageDebt #CreditCycles #SteveKeen #Ravel #Economics #PILL #DebtJubilee

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