3w ago

Landlords are scum...

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Yeah but expanding those programs on the order you're talking about is absurd levels of money. Not to mention the credit risks...unless you're suggesting the government act as guarantee, in which case we'll have a student loan scenario. Home prices will just rise to whatever they were before, plus the government grant.
- the government has absurd levels of money
  it will literally earn the government money long term
  it's not like it'll happen overnight
  it's not a grant it's a loan. The loan would be for the entire amount. This is already basically in place in a different country.
  prices would not skyrocket because there would be virtually no rental market so if you wanted to sell you're selling to someone who is going to occupy. Homes will not be investments the way they are currently seen. This will be a way for people currently in a position to only rent to start getting equity so they can have better opportunities in the future. Selling to upgrade will be done because a) you started earning more b) because you had a period with no payments and therefore were able to save c) originally purchased below your means. There will be inflation, but generally no one will be moving into a home for 500k and selling 2-3 years later for a million. There won't be enough buyers once investors are mostly disincentivized/removed from the market
  
  Most governments do not, including the USA. Yes, they take in lots of taxes, but they spend even more. Governments frequently run at a deficit more often than not.
  How
  Irrelevant
  A loan to people with shaky credit with no penalties for defaulting is effectively a grant. See: PPP loans.
  None of this addresses the inflationary aspect of government money being pledged to support a purchase. If the government is promising to loan up to $500,000 then I know for sure I can sell it for $500,000. Why would I ever sell for $400,000? It creates a price floor.
  
  You clearly just don't like the policy, but all of your points have responses.
  tax more. Literally everyone on the left agrees with that
  More money in the economy is more opportunity to tax. People that need this benefit will be most likely to actually spend their money on good and services. These programs will also give homes and stability to people so that they can get out of cycles that impede their upward mobility and cause them to continue to depend on benefits.
  it is not irrelevant because this would not be a check for billions being written overnight. There would be a roll out to ensure stability and work out issues with the market
  never said no penalties for defaulting and plenty of people with bad credit need housing and are being provided with it by the government anyways. Might as well not give that money to 3rd party landlords that drive up rents. Also, this is nothing like PPP, other than that the government is involved.
  the government would operate like any bank would. It would not allow a 500k loan for a house not worth 500k. You're not guaranteed a number. That should have been clear based on my above comment that mentioned potentially upgrading to a different house when your income increases. Houses aren't just more expensive because fha loans exist. And again, all of this would be in a market where investment properties aren't really a thing.
  If you don't think the government should be involved in housing, you can just say that.
  
  If your solution to such a complicated economic issue is "just tax more bro", then I'll just wait until you finish high school before trying to discuss grown-up things with you.
  
  If you think the solution to budgetary issues isn't to tax more when we're at a lower tax rate on corps and the rich than we have been in a long time then it's you that needs to do basic econ/government classes
  
  I'm saying that it's way, WAY more complicated than "just tax more".
  
  It literally isn't just "tax more". I explained that in the long term this would be a boon to the economy and taxes and that the program would have a gradual introduction which would allow for the program to begin paying for itself by the time it's fully implemented. I'm not sure if you're incapable or just unwilling to read, but there are solutions to the housing problem, and "people can't afford housing so let them be homeless" is not one of them.
  
  I never fucking said that so please stop implying I did.

176 comments