Tax incentives to builders to construct 3 million starter homes, down payment support to first time buyers, support to local governments to deal with housing.
She sure didn't steal that from Trump!
I think this will be enormously popular with Americans.
The joke on Twitter is that she just announced that my house is worth $25,000 more. That "down payment support" buys people nothing in the real world. It's like she doesn't understand economics at all.
Explain
shareThe government offered to give people $2000 or some such to help with buying an electric vehicle. All that did was raise the prices of electric vehicles.
The government got into healthcare when LBJ started his "Great Society." Until then, people could afford to stay in the hospital.
The government got in the student loan business. Tuition immediately went up. And kept going up.
Every time the government throws money at a problem, the price goes up. Every. Single. Time.
This time they will have more money pumped into the housing market, which will inflate prices of houses.
You'd think people would learn, but they never do. But since they spend the time they should be spending teaching history and economics teaching gender equality and queer studies instead, you're probably right about it going to be wildly popular with low IQ and undereducated Americans.
Oh -- and since the government will be spending more, housing won't be the only thing inflated. The government printing money also causes prices to inflate generally. Kamala saying she'll keep a lid on prices won't cause the costs of manufacturing goods to go down. That's why everyone's saying her plan will give us the kind of bread lines we see in communist countries. Fewer goods. Businesses going belly up. Just call us Venezuela North if she gets elected.
If you actually think they were trying to solve the problem, they were not. Trust me if government really wants to get something done, they will get it done, just look at Iraq. But that is not one of those things.
They do these things because it was billionaires got them elected, and they don't work for the people.
I think what they did was to actually cause those "unforeseeable" consequences deliberately, as wealth transfer from taxpayers to corporations, but sell them as welfare for the people. Because most people are ignorant, that is why they are called the "ignorant masses".
Educated and informed people can see those "unforeseeable" consequences, like you did. It is really not that hard to see them. I am pretty sure Kamala Harris saw it too.
pwned lol
shareShe does. Australia's "First home grant" works similarly, welfare, right? But it was actually to compensate real estate industry after the introduction of GST.
It was welfare all right, corporate welfare, that is.
In the words of Dan Aykroyd to Jane Curtain . . . . . Kamala, you i****a*t sl*t.
shareIt will be popular with those who don't understand basic economics.
shareExplain the problems
shareLet's assume you know something about economics. What's the economics 101 answer to, "What causes inflation?"
Okay, let's assume you know diddly squat about economics. The answer is, "Too much money chasing too few goods."
The government injects massive amounts of money into the housing market. Hence, "Too much money." Everyone's agreed there's a housing shortage. "Too few goods." Et voilĂ , "Too much money chasing too few goods." If you think houses were unaffordable now, wait until Kamala gets done with wrecking the housing market.
And since the government doesn't have the money, they're going to have to print it, which makes the real value of everybody's money go down, i.e., inflation. Pretty soon we'll have to carry around wheelbarrows full of money -- metaphorically speaking -- to get a loaf of bread. Weimar Republic territory. And then we're ripe for a dictator like Hitler, who was an adumbration of the Antichrist.
But hey! What could go wrong? 🙄
You haven't explained how she will wreck the housing market.
shareI can explain it to you. I can't understand it for you.
shareHaha! Good come back. I'll use it again.
Also, I learned a word today: "adumbration". A first on MovieChat.
Obviously, you can't explain it. You just statue it like fact with nothing to back it up.
shareI did explain it. You just didn't realize I had.
It's sad. If you're not familiar with the phrase, "Too much money chasing too few goods," or the concept that when the government prints money it's just paper and simply cheapens the value of the money you have, meaning you have to pay more for anything you want -- i.e., INFLATION -- then you don't even have a passing acquaintance with the mere basics of economics. That's okay. Neither does Kamala or Biden, obviously. But since you don't understand it, it's a little silly to claim I haven't explained it when I have.
I just explained it again, and my wild guess is you won't understand.
"Too much money"
You do realize that the bicentennial and the fed pumped trillions into the economy for over a decade and inflation didn't treat up until the Russians invaded Ukraine and dispute energy supplies at a time when supply chains were struggling to recover from COVID?
Now, what about the plans Harris released on the housing crunch, which will increase the stock of new homes has anything to do with what you wrote and wrecking the housing market?
What's the "bicentennial"? What does "treat up" mean? When we started printing trillions to send to Ukraine -- printing worthless paper makes the value of our money go down -- was when the single-digit inflation we'd accustomed ourselves to shot into double-digits.
Pump money into anything and the prices go up. Take, for instance, the Californicators who move to other parts of the country after selling their cracker box houses for over a million in their inflated market. Oregon had low land and housing prices until the Californicators came in with their cash and started bidding on houses. They'd see a house they really wanted and didn't want to spend time waiting. So they'd bid $25,000 more for it -- back when $25,000 was a lot of money -- and they'd get the house and the price for a median home just went up by $25,000 because that's what Californicators were bidding at the time.
Now people are going to plop down $25,000 inflated dollars as a downpayment, and the Californicators -- or whoever -- will outbid them in order to get the house. The price of housing just went up by $25,000. At a minimum.
On top of that, the government had to print worthless paper to give those people that $25,000, so inflation goes up all around. So housing costs even more. The $25,000 isn't going to get the poor people a nice home. It's going to get them a crummy cracker box in a bad neighborhood with bad schools where nobody wants to live. If it gets them that. She's going to have to build shoddy government housing and sell them condos. That will be more paper printed and more inflation.
The poor people still get done over, and the rich still get richer. But like Obama, she'll be able to brag about how many more people she's put on food stamps. 🙄
She wants 3 million new houses. That in and of itself isn't a bad thing. But how does she say she'll make it happen?
First, with a tax incentive for homebuilders. What does that mean? It means reduced taxes for the builders. That means a shift of that tax burden to everyone else, as the government never reduces its income, it only changes who has to pay it.
Second, she will create a $40 billion innovation fund for local governments to build housing. That's bad for two reasons. It adds another $40 billion to the national debt, and it puts the government in charge of building homes. The government never does anything well, and it's always better to have the private sector doing whatever it is.
Third, her plan includes $25,000 in down payment support for first-time homeowners. 3 million new homes, and 25k to each new homeowner. That's as much as $75 billion more in debt. Where will that money-- as much as $115 billion-- come from? The printer. What will that cause? Inflation. When new money is printed, the wealthy benefit from it, and the rest of us suffer the subsequent inflation.
If she actually wants to do something good, she'll reduce government spending and lower, or eliminate, the federal income tax. That will actually stimulate economic growth and create a demand for new homes that will be satisfied by builders.
Do you want to solve our housing shortage or not?
shareYes, I'd love to. I believe the way to do this is:
1. End the Fed and switch from the U.S. Dollar to Bitcoin.
2. Abolish the IRS. The government can subsist solely on taxes other than those on the income of citizens.
3. Reduce government spending to a bare minimum. The U.S. government spent $6.13 trillion in 2023. That can be chopped to about $2 trillion. Sadly, almost $1 trillion of that will go to pay only the interest on the debt that already exists. Over time, the debt needs to be paid off, not increased.
4. Immediately deport every person in this country illegally.
The biggest reason people can't afford homes now is because the government sucks up most of our income, and then it prints trillions more on top of that. That leaves citizens broke while inflation soars. Illegals are easily exploited by businesses, driving wages down and reducing the number of jobs available to citizens.
If we did the four things above, inflation would cease to be, and prices would deflate over time as new technology lowers the cost to create/do things, and homes would be priced in balance with wages.
I thought the rise in housing cost was a result of people moving out of the cities during covid, an increase in rental properties and most importantly blackrock, vanguard and other foreign entities buying up the land?
If thats the case, her plan will fail. Might even make it worse. And her $25k down payment aid will do diddly dip. And I'm pretty sure you have to meet some guidelines to be eligible that will exclude more people than it helps.
I'd have to look at the full details of this plan but the last time the federal government got involved in housing on a national level, it didn't turn out very good.
The Freddie Mac/Fannie Mae plan was a disaster. If this is anything remotely similar, it won't be good for America.
I see this as perhaps a way to gain the support of young voters, I think the democrats are losing ground with them.
So, they come up with things like 'student loan forgiveness', and now this.
First she wants to control pricing and now housing etc... etc...
The 'equity' non-sense is ridiculous too. All Trump has to do is paint her as a far left socialist and it's game over.
Similar measures are in Australia as well, have been for the past several decades, more and more measures came out, such as first home grant, allowing early access of superannuation (retirement fund) to purchase properties, etc. The latest is home equity, government pay half of the house, and receive half the profit when sold.
The only thing those measures did was to push up property prices, making it even more unaffordable.
The proven way to end housing crisis is to build state owned low rent apartments, along the public transport lines, leasing them below market price.
But that is political suicide, the renters, people who do not own properties, which are usually only about 1/3 of population (mostly the young), at least in Australia (roughly 1/3 own property outright, 1/3 paying mortgage, 1/3 renters).
Nobody other than the renters wants to end housing crisis.
Certainly not the majority of the (older) people and of course corporate interests such as real estate industry (Trump, cough cough).
The media and politicians always blame immigrants for housing crisis, because they can't tell you the truth, which is neither the corporate interests nor majority of the people want to solve housing crisis, they were all trying to make it worse. And it usually ends up with successful fueling of much worse housing crisis.
It was about time but this looks to be a possible benefit to Americans.
shareLisa needs braces.
share