Save The Home “Owners”

Well, they don’t actually own their homes – they have little or no equity. They would be more correctly described as people living in houses they can’t afford, paying below market rents. It’s a great deal if you can get it. Now that the jig is up, President Obama and others want to extend the deal using taxpayer dollars. That’s great for the lucky few, but a bad blow for everyone else. Why would a politician do such a foolish thing? A blog comment has the answer:

It’s actually very simple to understand. Consider People who have shown restraint, control and forethought in how much house they may afford and when best to purchase it. These individuals and families are not very likely to vote for someone just because the politician stayed out their lives and they were allowed to do so.They would regard the political as just doing what is right, commonsense and nothing special.

People who were unable, unwilling or just inpatient and bought a house beyond their means are very likely to vote for whoever ‘saves’ them.

via “I Don’t Care”, David Henderson | EconLog | Library of Economics and Liberty.

I hope that prudent people, people with common sense, recognize how they’re being harmed and who is responsible.

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