Set economic zones to avoid the harm of speculative real estate

                   Frank  Dec.  2010  -  Nov.  2014  in Waterloo, Ontario, Canada

This is a part of my article:

What is the need for a better Canada and How to achieve them

          ---  A better Canada for our future generations:

            Jobs  &  Revenue

How to achieve them?

The motivation for the idea

Though, that overheated real estate has made big trouble in Japan as a speculation means to have heavily damaged the development of the real economy, but we should also look at the positive side of it may play a powerful role to attract investment for stimulating economic growth..

The thorniest problem is that, in financial economy overheated today, as usual, when the information of some areas will be developed as industry, the speculators will deluge in as that of the Vultures in the wild African grasslands. The construction does not begin yet, the land prices have been pushed in soaring up, which is easily to strangle the industry in the invisible entity.

Such as, in 2001, after China agreed to participate in the development of the Gwadar Port in Pakistan, the project did not start yet, the price of the land there has soared up. My son’s university classmate who was from Pakistan said about that.

As mentioned above, under over heated real estate market, Vancouver is losing the foundation for the development of real economy, which seems to have followed the dust of the failed road of Japan.

Of course, the restriction as Peter Ladner suggested is necessary. However, in consideration of the terrible lessons of Japan, we should not just simply introduce restrictive measures, since that may damage the engine for driving local economy by absorbing foreign funds, but rather, we must make every effort to explore favorable approach to reduce the harm.

For this end, we may set special zones separately for the development of speculative real estate and industry separately.

We must strictly limit the Area for the Speculative Real Estate (ASRE), such as, for the house prices soaring up area in Vancouver may allow it as is in free indulging continuously, while, to reserve enough space as Technology Parks (TP) for the development of other industries and residential for low income working class.

Within the ASRE, we must properly legislate to control its healthy development, such as, we may consider that, in Canada, strictly prohibits the loans for speculation of real estate in the ASRE to avoid financial crisis. It reported that in the some area of the United States have similar policy and the deal on the real estate by cash mostly.

Within the TP, we must also properly control the healthy development with legislation of admission requirements for residing into as a measure for preventing the housing speculation. For example, to take the tax records, the workplace location, or, and, the first time buying a house in Canada as condition. Any way, it must under the strict household registration control.

By strictly forbidding the intrusion of the Capital Predators, to create a fairyland for those who are willing to run a business to provide employment and tax revenue and those who are willing to make livings with hard working, thereby, to ensure business owners and their employees can both be affordable for their survival.

Thus, by setting ASRE and TP to ensure the speculative real estate and real economy can health develop side by side, and moreover, by the tax income from the free play of real estate to subsidize other industries to create more job position and more tax revenue.

As return, the working class, with the proceeds from their hard working, enjoys the prosperity created by the speculative real estate – the bustling shopping and the entertainments. Also, such consumer spending is the essential support for the sustainable development of speculative real estate.

Only in this way, we can avoid the greatest tragedy of human society that decent people who are hard working for creating material wealth, but can not live decently.

A rational society should ensure that, the people who are with dignity and are willing to earn a living through the exertion of own ability of mental and physical to be able to live with dignity.

Faced with chaotic and hopeless world, as a rational government, Canada should be and be able to set an ideal model – a perfect future society.

4.3.2. The management for the Technology Park

Technology Park needs the design of the overall plan, such as that sets related regulations, even legislations, so there is necessary to set a Management Committee at first as an agent of the government that composes of different professionals as powerful leadership for the decision making and daily management.

The Management Committee reports job to immediate local government or higher level of the government.

1. To establish the basic development plan.
2. To provide proposals of development policies for legislation.
3. To provide a full range of services for the businesses in TP.
4. To invite companies with promising development potential world widely.

4.3.3. Quick legislation for the development within the TP

The management of the Technology Park relating the market competing, it requires rapid response with rapid legislation.

The key for the success of China’s economic reform was that permitted to make local policies independently in the economic test zone.

In the TP, we may permit independent legislation also. If, there is international practice, we may refer to. If there is no reference, we may make new one independently.

In the TP, the problems mostly relate to the economical and technical, less in political, the legislation should be easy.

The main legal issue may be that preferential tax rates and the time duration for invited foreign businesses enjoying, the number of the accompanied technical backbone from business mother country.

And more.