Because Commies Don’t Understand Economics

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.

OPM

Whenever I say that we should get rid of government giveaways and welfare programs, I get to hear people tell me how I am heartless and want people to starve, as if the economy is a binary choice between the government doing it, or no one doing it. Read this, and see how kind people can be:

The problem here is that commies aren’t generous. They want the government to take from those who have more than they do, and give it to them. That’s what communism is.

Just to be Clear

Segments of the US government were working with the Chinese government to release a plague that they jointly researched so the rules for elections could be changed to put a Chinese agent in the Whitehouse.

Thus bringing about the end of the United States and catapulting China into the #1 spot. Does that about cover the last three years?

We Are Right Behind Them

Now that Trudeau has declared price controls for food, anyone who protests him and his decisions gets beaten up by his security detail.

When will this be coming to the US? It looks like we are just a few months behind Canada in the descent into Communism.

Canada = Communist Dictatorship

Trudeau has given grocery stores in Canada until Thanksgiving to charge whatever prices for food that he deems fair. This is what commies always do-

  • enact bad monetary and economic policy that causes shortages
  • shortages cause price increases and inflation
  • blame businesses for increased prices
  • enact price controls, which create more shortages
  • businesses stop selling, which creates even more shortages
  • people turn to the black market at prices that are even higher
  • starving people eat their pets

Illegal Tenants

California tenants get free lawyers when they are evicted from a rental property, and now the left is demanding that this handout be expanded to illegal immigrants.

“The court system is very nebulous and discouraging for residents, who do not know how the court system works,” said Sandra Plascencia, a policy advocate with Leadership Counsel for Justice and Accountability, a local advocacy group. 

So the landlords have to fight against the government’s unlimited coffers. What effect does this have? The reputable businessmen will leave the rental business, and all you have left will be the shysters. This woman only makes $500 a week. In California. There aren’t many reputable landlords who will rent to someone making $25k a year in an expensive real estate market like California. After all, what kind of place can you realistically think you are going to rent for a woman, her child, and her elderly mother in a city whose average rent is $1.64 a month? A shitty one, that’s what. Still, forcing landlords to provide all of these benefits and forcing them to provide nicer rentals is merely going to ensure that women like the one in the article won’t be able to get a rental at any price.

Of course the commies in California have to lie and misdirect, because that is what the left does:

“If you steal a watermelon or a steak from a store and get arrested, you get a public defender to walk you through the whole entire process,” said Shara Thompson, the Central Valley regional coordinator with Tenants Together, a local advocacy group. “But when you’re being evicted for subletting — which is very minuscule — you don’t get any assistance.”

The big lie here is that stealing is a criminal offense where the legal adversary is the government and losing means perhaps going to jail. In an eviction your legal adversary is another citizen, and losing means having to move out of the rental property that you don’t own and aren’t paying for.

According to the California Apartment Association, rent increases above 10% annually are allowed on older buildings if landlords provide proper notice. Landlords can also evict people on the claim of major renovations to the home, which advocates say is another common tactic they believe is used to evict tenants. 

Then the article goes on to claim that landlords are being unfair because they won’t renovate properties, but then also takes landlords to task for asking tenants to move out so they can renovate properties.

I have said before that one of the things that communists ALWAYS do is portray property owners into some sort of evil monsters who prey on the poor. You will notice that the article is nearly ignoring the fact that wage earner for this illegal immigrant family of three is earning less than California’s minimum wage.

Commies gonna commie.