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> I would prefer a much more robust housing support system for lower income people. Almost all of society's problems could be fixed with more affordable housing

> I would prefer a much more robust housing support system for lower income people. Almost all of society's problems could be fixed with more affordable housing. > When I was young I was able to find a $600 apartment, on the free market. Now the same place is 1200$. The issue is that the overwhelming goal of politicians at all levels is to increase the value of individually owned residential units above the rate of general inflation. This is far and away the most popular form of welfare and impossible for any politician to oppose. It is also diametrically opposed to affordable housing so any and all affordable housing proposals are bound to be ineffective bandaid proposals. If we want affordable housing the only way to get it is first lower the homeownership rate.

bumby 5y ago
It’s interesting as well that the policies used (e.g., mortgage interest deductions) are almost universally considered bad policy by most economists. It’s rare to find such a consensus in economics, yet it’s such a third-rail that politicians can’t touch it
- bradleyjg 5y ago
  It’s “worked” for a very long time. Greatest generation through even some older millennials have been able to treat their homes like a self filling piggy bank. It’s natural that there would be a lot of denial that this can’t go on forever.
  - bumby 5y ago
    I think from the economist perspective, it incentivizes the wrong behavior and ends up not helping those it was supposed to help in the first place. For example, the tax deduction incentivizes people getting the biggest house possible to maximize the deduction. It also disproportionately benefits the higher income classes because they are able to afford more expensive homes. So from a perspective of helping more people become home owners it’s bad policy. It’s actually better at helping people who already are in a class that can afford homes just be able to afford more expensive homes. From that angle, it never really “worked”. But so many people are accustomed to the benefit it’s virtually impossible to roll back.
mastax 5y ago
California has made huge strides over the past year to legalize housing, so I have some hope that the winds are changing.
- 41209 5y ago
  California's been too far gone for decades. Literally no one but the rich, or those who like suffering should stay there. It's an absolutely beautiful state, but it's just so hostile to anyone who wants to have a decent life.

bumby 5y ago

It’s interesting as well that the policies used (e.g., mortgage interest deductions) are almost universally considered bad policy by most economists. It’s rare to find such a consensus in economics, yet it’s such a third-rail that politicians can’t touch it

bradleyjg 5y ago
It’s “worked” for a very long time. Greatest generation through even some older millennials have been able to treat their homes like a self filling piggy bank. It’s natural that there would be a lot of denial that this can’t go on forever.
- bumby 5y ago
  I think from the economist perspective, it incentivizes the wrong behavior and ends up not helping those it was supposed to help in the first place. For example, the tax deduction incentivizes people getting the biggest house possible to maximize the deduction. It also disproportionately benefits the higher income classes because they are able to afford more expensive homes. So from a perspective of helping more people become home owners it’s bad policy. It’s actually better at helping people who already are in a class that can afford homes just be able to afford more expensive homes. From that angle, it never really “worked”. But so many people are accustomed to the benefit it’s virtually impossible to roll back.

mastax 5y ago

California has made huge strides over the past year to legalize housing, so I have some hope that the winds are changing.

41209 5y ago
California's been too far gone for decades. Literally no one but the rich, or those who like suffering should stay there. It's an absolutely beautiful state, but it's just so hostile to anyone who wants to have a decent life.