Stance on Housing for the Poor

  1. samsmart
    One reason why we're in the Great Recession is because of the housing bubble and the government giving out and allowing private lenders to give out subprime loans so the poor could afford mortages for houses. I can't sleep, so I would like to state the Neopaleoprogressivist stance on housing for the poor.

    The NPP stance is that the government has the power to regulate construction companies and housing developers to ensure they build housing for the poor. Shelter that is affordable for minimum wage earners is possible. It's just that housing developers choose to not develop housing for the poor because they can make more money by building housing for the middle class. After all, why build efficiency apartments for the poor when you can use that same land to build condos for the middle class and earn more money?
  2. samsmart
    But not doing this is what caused the subprime bubble that caused our recession. Instead of building a portion of houses that is small and cost effective enough for the poor to pay the rent or mortgage on, the government allowed or even coerced lending institutions to give out subprime mortgages to the poor for the McMansions that were being built that the poor couldn't afford.

    This caused a number of interferences in the free market. One was that it acted as disincentive for housing developers to build housing that the poor could afford the mortgage on. Because of this, there are few houses that people can afford since most of the existing houses are too costly to allow the poor to rent or mortgage.
  3. samsmart
    However, it is generally considered a human right to have shelter and housing. Libertarians and conservatives tend to believe that the free market should decide such things, and if the poor can't afford housing then there's nothing to be done. This is wrong because everybody does have a right to housing. Liberals and socialists tend to think that the poor have an absolute right to housing and the government should foot the bill to ensure the poor gets sheltered. This is wrong because the government buying houses for the poor artificially inflates the worth of all housing, which is what creates housing bubbles like the one that got into this mess.

    So what's the best way to address this issue?
  4. samsmart
    According to the Neopaleoprogressivist platform, the best way to address housing for the poor is to use regulations that demands that housing developers build a portion of the local area for housing for the poor. For instance, should a housing developer wish to build a community of McMansions, they first have to build a number of houses that are affordable by minimum wage earners. The housing developers do not have to build them at a loss, however - rather, they have to build them at a profit that can be maintained by minimum wage earners.

    To help in this, it is also the Neopaleoprogressivist stance that property taxes for residential areas be repealed and instead a sales tax be issued. This way, the poor who can pay off their mortgage can afford to keep it.
  5. tacomancer
    seems like a reasonable approach to the subject.
  6. samsmart
    Thank you. That's probably why it'll never get implemented.
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