The government has spent vast sums of money promoting
homeownership through subsidies, tax exemptions, and bailouts.
For example, in prosperous Alexandria, Virginia, certain people who never saved
up enough money for a down payment received
interest-free loans from the federal government to enable them to
make a down payment. They do not have to repay those loans until they sell
their home. Thrifty people with savings were not eligible for such a handout,
penalizing them for their thrift.
Supporters of taxpayer subsidies for homeownership
falsely claim it promotes political stability and prosperity. But As George
Mason University’s Michael Greve notes,
“there’s actually very little support that home ownership correlates with—let
alone promotes—democratic stability. If anything, the data suggest that
ownership rates are inversely correlated with political stability and the rule
of law.” Bankrupt, unstable Greece has a much higher homeownership rate than
does the United States. Stable, prosperous Germany and Switzerland have much
lower homeownership rates than the U.S. does. European countries facing fiscal
crises, like Italy, Spain, and Portugal, have higher homeownership rates…..ToRead More…..
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