Home Ownership & Middle Class

Main discussion area is here. Reply to a message to continue a discussion thread, or create your own new Topics.
[phpBB Debug] PHP Warning: in file [ROOT]/vendor/twig/twig/lib/Twig/Extension/Core.php on line 1266: count(): Parameter must be an array or an object that implements Countable
User avatar
1Centrist
Posts: 243
Joined: 2015 Mar 07 10:03
[phpBB Debug] PHP Warning: in file [ROOT]/vendor/twig/twig/lib/Twig/Extension/Core.php on line 1266: count(): Parameter must be an array or an object that implements Countable

Home Ownership & Middle Class

Postby 1Centrist » 2015 Mar 17 09:01

Is home ownership a bedrock of the middle class? Is it important to our national character (i.e., the "American Dream")? If it is, should government fiscal and monetary policies foster it?

Image
American Dream Home: What's the Middle Class Without a House?


:hum:

User avatar
Wise One
Posts: 1959
Joined: 2007 Nov 02 09:33
[phpBB Debug] PHP Warning: in file [ROOT]/vendor/twig/twig/lib/Twig/Extension/Core.php on line 1266: count(): Parameter must be an array or an object that implements Countable

Re: Home Ownership & Middle Class

Postby Wise One » 2015 Mar 18 10:53

I couldn't find an explanation of the difference between the blue and red curves in the referenced article. Is it there? If not, please explain.

Somewhat tangentially, as a matter of public policy I have long opposed the permanent tax deductibility of home mortgage interest. It had a one-time value in its early days, but that quickly evaporated as home prices rose to re-establish equilibrium, thereby obliterating any net advantage for prospective home purchasers. That's how markets work. Furthermore, it's unfair because it is more advantageous to wealthy people than to poor people.

If we really want to broaden home ownership, tax deductibility of home mortgage interest should be ended. Market prices will decline correspondingly, and a larger base of financially qualified purchasers will be created.

I understand the politics. It's a heavy lift but still a change to strive for. I'd phase out deductibility linearly over a period of ten years to avoid painful market discontinuities.

:coffee:
"If your only tool is a hammer, every problem looks like Donald Trump."

User avatar
1Centrist
Posts: 243
Joined: 2015 Mar 07 10:03
[phpBB Debug] PHP Warning: in file [ROOT]/vendor/twig/twig/lib/Twig/Extension/Core.php on line 1266: count(): Parameter must be an array or an object that implements Countable

Re: Home Ownership & Middle Class

Postby 1Centrist » 2015 Mar 18 11:55



[phpBB Debug] PHP Warning: in file [ROOT]/vendor/twig/twig/lib/Twig/Extension/Core.php on line 1266: count(): Parameter must be an array or an object that implements Countable
[phpBB Debug] PHP Warning: in file [ROOT]/vendor/twig/twig/lib/Twig/Extension/Core.php on line 1266: count(): Parameter must be an array or an object that implements Countable