Here's the economist perspective: Above all, it is inefficient. By subsidizing bigger, more expensive houses, the policy misallocates scarce savings away from

Here's the economist perspective: Above all, it is inefficient. By subsidizing bigger, more expensive houses, the policy misallocates scarce savings away from productive investments that raise living standards through income- and job-creating innovations. It also makes our financial system more vulnerable: as we wrote in an earlier post, it encourages people to take on risks – in the form of large, subsidized mortgages – that they are not equipped to bear. In the recent crisis, risky mortgage debt was sufficient to put the entire financial system at risk. http://www.moneyandbanking.com/commentary/2015/6/3/why-the-mortgage-interest-tax-deduction-should-disappear-but-wont http://www.moneyandbanking.com/commentary/2015/6/3/why-the-m...