Macro Musings with David Beckworth Mike Bird on the Land Trap and How the History of Housing Impacts the Global Economy
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Nov 24, 2025 
Mike Bird, the Wall Street editor at The Economist and author of The Land Trap, dives into the intriguing history of land and housing. He discusses Abenomics and its disappointing results, the pandemic's housing price surge, and the unique characteristics of land as an asset. Bird highlights Wolf Ladejinsky's role in postwar land reforms in East Asia and connects land ownership to economic stability. He also examines China’s real estate model and the demographic challenges for both China and Japan, shedding light on the broader impacts on the global economy.
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Hong Kong Sparked The Book
- Mike Bird moved to Hong Kong and saw extreme house price-to-income ratios routinely above 20.
- Hong Kong's government-owned land lease system deepened his curiosity about land as an asset.
Land Is A Unique, Systemic Asset
- Land behaves very differently from other assets because supply is fixed and value derives from surrounding economic activity.
- When land dominates national wealth it creates political and financial fragility since large moves either way cause major problems.
Stabilize Nominal Incomes Fast
- Rapid monetary and fiscal support during COVID stabilized nominal incomes and helped prevent a housing bust.
- Policymakers should prioritize restoring nominal incomes quickly to protect financial stability.
