VIP Class Notes (George) [W]

Check out the book Predictable Irrational by Dan Ariely 

Write a short piece on what organizational psychology is and one example of it being used.

Vocabulary

Tragedy of the Commons-  When there is a set pool of resources but one person decides to be greedy and so the rest also do, depleting that resource faster than it can regenerate.

e.g. Unpaid overtime in China has become a real tragedy of the commons.

Original

New Zealand’s parliament has passed a bill to ban non- residents from buying existing homes in the country. This bill aims at easing the housing affordability crisis, which has left ownership out of rich for many residents in the country. According to the report, average prices in New Zealand have risen more than 60% in the past 10 years. Chinese investors have been among the biggest and most active offshore buyers of property in the New Zealand market.

There are some criticisms about this new bill, which argues that such a policyies cannot solve the problem completely. I understand the purpose of the bill, especially the crazy overseas investment conducted by Chinese investors in the worldwide real estate markets, which may increase the local housing price in a short term. However, we also need to admit that such simple ban policy may only produce short term effect to cool the housing prices, while bringing a negative impact on the foreign investment in the country, which could bring more job opportunities and social diversity. If foreigners can make contribution to the country, why shouldn’t they be welcomed to buy real estate and live in the country?

Corrected

New Zealand’s parliament has passed a bill to ban non- residents from buying existing homes in the country. This bill aims at easing the housing affordability crisis, which has left ownership out of reach for many residents in the country. According to the report, average prices in New Zealand have risen more than 60% in the past 10 years. Chinese investors have been among the biggest and most active offshore buyers of property in the New Zealand market.

There are some criticisms about this new bill, which argues that such a policy cannot solve the problem completely. I understand the purpose of the bill, especially the crazy overseas investment conducted by Chinese investors in the worldwide real estate markets, which may increase the local housing price in a short term. However, we also need to admit that such simple ban policy may only produce short term effect to cool the housing prices, while bringing a negative impact on the foreign investment in the country, which could bring more job opportunities and social diversity. If foreigners can make contribution to the country, why shouldn’t they be welcomed to buy real estate and live in the country?