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> I doubt that the state will be more efficient in building houses than private enterprises can if allowed to do so

Depends. If the profit is in more expensive housing, than private enterprise will bias towards that and ergo be less efficient at building lower-margin "affordable" housing.

Ideally, in a perfect frictionless economy populated by spherical cows, yes, private enterprise will more efficiently allocate across the entire spectrum of market needs -- so in principle, I'm agreeing with you.

But spherical cows make lousy roommates.




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