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People are making an error in talking about subsidized housing. It has not been subsidized for many years. It is public housing in that it is owned by local councils.
keeping living expenses low, by supplying cheap food and housing allows a low minimum wage thus cheap labor. The subsidy is for companies who pay crap wages. This is one of the functions of a capitalist state to keep wages low. Import cheap labor, high unemployment etc. all ways of lowering the cost of labor and hence production.
This is the reason States hate one of the few democratic organizations there are - the Trade Unions, as they are able to force wages up.
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