Joe Biden wants to give a tax credit to half a million people so they can buy houses in distressed urban, suburban, and rural neighborhoods. This shows a complete lack of understanding how supply and demand works. Even worse, there are Republicans who are buying in to this idiocy.

Let me tell you how this plays out. If you want to skip to the short version, this tax credit will affect the price of homes in the same way that government tax credits and loans have affected college tuition, as well as the way that minimum wage increases and free COVID money affected the price of everything.

Throwing this money at people in the form of a tax credit to encourage home buying didn’t work when it was tried in the 90s, as evidenced by the economic crash of 2010. Throwing money at this simply increases the demand for houses, which at first drives up prices. Then, since this is a one time tax credit, the people who don’t make enough to make the payments get foreclosed on, which causes a ripple effect of other foreclosures and bankruptcies, which increases the supply side and drives down home prices.

Meanwhile, people like me who already own a few homes cash out at the inflated prices and wait for the housing bubble to burst and make a nice profit. I got caught on the bad side of that trade back in 2010 because the housing bubble bursting caused my hours and pay to be cut. This time, I will be ready for it.

Categories: Communismeconomics


joe · December 22, 2023 at 5:14 am

this has nothing to do with anyone buying a house… it has everything to do with buying votes and raising is shitty poll numbers… just like paying off the college money… those are easy votes since most of those retards are commies anyway

SiG · December 22, 2023 at 9:31 am

What’s that saying, “socialists don’t understand economics because if they did they wouldn’t be socialists?”

No matter what the question, no matter what the problem, you can always count on them to make the worst possible decision.

McChuck · December 22, 2023 at 12:09 pm

Cloward-Piven strategy at work. Plus the usual Demmunist pandering to their base.

Danny · December 23, 2023 at 9:53 am

Remarkable that for now the US economy is plodding forward – even though dragging the dead weight these idiots have saddled us with. How much longer is anyone’s guess.

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