During these weeks of vacation, I had the opportunity to travel through Spain. In addition to enjoying its history, food and art, the constant news was public complaints about the housing problem. Around that time, the story of an 87-year-old woman named Maricarmen went viral. On September 23, she was evicted from the apartment she rented after living there for 71 years. It became “the last straw,” sparking demonstrations that took over Puerta del Sol in Madrid.

What happened?

The message varied depending on political leanings. The left strongly criticizes investment funds and those who invest in multiple properties to offer them as short-term rentals on platforms such as Airbnb, sharply reducing the housing supply and “pushing” residents out of certain areas. On the right, the problem is seen as regulation and the government’s lack of a plan to encourage the development of new housing.

Regarding Maricarmen and the current law, we should note that her rent remained unchanged when her father died and her mother took over the lease. When her mother died, the lease passed again to the daughter, Maricarmen. The investment fund that acquired the property in 2020 informed her that, under the law, a second transfer of the lease was not permitted and that her rent would rise from €500 to more than €1,650—an amount she could not possibly pay with her monthly pension of €1,400. After her eviction, Maricarmen died on October 7, but the demonstrations are still very much ongoing.

Why am I sharing this with you?

Because political disagreements are causing paralysis instead of becoming issues to discuss and resolve. In Spain, Pedro Sánchez sought to pass certain reforms that parliament did not approve, and he decided to announce the dissolution of parliament and call early elections for late November. This resolves nothing. Sadly, this is happening in many countries around the world, where the extremes refuse to listen to their counterparts. In Mexico, for example, whenever the current government is criticized, it defends itself by saying it “has other data” or that the critics “are from the opposition” and therefore are not telling the truth.

Neither the left nor the right is perfect. Their representatives even less so! Feelings should not drive us to think one way or another; facts and proposals that make sense should. There will always be people who are harmed more or less. That is inevitable. In my view, what Sánchez’s government proposed did not address the root of the problem and greatly harmed property owners. But the solution was not to dissolve parliament; it was to reach a compromise.

To conclude, private property is not a privilege but a right. If the market has transformed social dynamics, we must seek a solution that preserves that right and instead limits the privilege of doing—or not doing—business with that property.

Have a great start to the week, and if this newsletter gave you something to think about, share it with someone else who might be interested.