April 13, 2008

Housing Crisis

Kevin Drum of Political Animal has been tracking the growth of corporate welfare as the march to bail out companies continues. The most recent is the Senate effort called the "Foreclosure Prevention Act", which does nothing at all suggested by the title. This legislation is aimed at bailing out builders. The Bush administration has threatened to veto it because it does not go far enough to suit them. I think of this more as a promise than as a threat. There is nothing in this piece of legislation to help anyone who is facing foreclosure, and a veto for legislation that provides more money to corporations will not break my heart..

Yes, corporate welfare is out of hand. Why should the tax system bail out businesses that have made bad decisions? Why should home builders be supported when there is already a huge amount of insanely priced housing? Are these people helping the Gulf states? Are they creating public housing? Um, no.

Perhaps it's time for builders to create modestly priced housing as the requirement for getting corporate welfare.

And then, there is the other problem -- bailing out people who have large, nice homes at the expense of those living within their means. Bailing out people with houses at the expense of people in apartments. Bailing out people who have been talked into bad decisions. How will we achieve a solution that includes justice as well as compassion?

Posted by Scorpio at April 13, 2008 09:25 AM | Economy | Technorati links |