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How The Government Stole Billions From The American Dream Of Home Ownership

Tennessee Williams

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Published in Another Big Lie: How The Government Stole Billions From The American Dream Of Home Ownership And Got Caught

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The American dream of home ownership is under attack. The government's policies have made it harder for Americans to buy homes, leading to a decline in homeownership rates and a widening wealth gap.

Another Big Lie: How the Government Stole Billions From The American Dream Of Home Ownership. And Got Caught!

4.6 out of 5

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The Government's Role In The Housing Market

The government plays a major role in the housing market through its policies and regulations. These policies include:

Zoning laws
Building codes
Mortgage interest tax deduction
Federal Housing Administration (FHA) loans
Government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac

These policies have a significant impact on the cost and availability of housing. For example, zoning laws can restrict the construction of new homes, which can drive up prices. Building codes can also add to the cost of construction.

The mortgage interest tax deduction is a tax break that allows homeowners to deduct the interest they pay on their mortgages from their taxable income. This deduction can save homeowners thousands of dollars each year, making it easier for them to afford a home.

FHA loans are government-backed loans that are available to low-income borrowers. These loans have lower down payment requirements and interest rates than conventional loans, making them more affordable for first-time homebuyers.

GSEs Fannie Mae and Freddie Mac are government-sponsored enterprises that buy and sell mortgages. This helps to create a secondary market for mortgages, which makes it easier for banks to lend money to homebuyers.

How The Government's Policies Have Made It Harder To Buy A Home

The government's policies have made it harder to buy a home in a number of ways. For example:

Zoning laws can restrict the construction of new homes, which can drive up prices.
Building codes can also add to the cost of construction.
The mortgage interest tax deduction is a tax break that disproportionately benefits wealthy homeowners.
FHA loans are only available to low-income borrowers, which can make it harder for middle-class families to buy a home.
GSEs Fannie Mae and Freddie Mac have been criticized for their role in the subprime mortgage crisis.

These policies have made it harder for Americans to buy homes, leading to a decline in homeownership rates and a widening wealth gap.

The Decline In Homeownership Rates

The homeownership rate in the United States has been declining for years. In 1960, 65% of Americans owned their homes. By 2004, that number had fallen to 69%. And by 2016, it had fallen to just 63%.

This decline in homeownership rates is due in part to the government's policies. The government's policies have made it harder for Americans to buy homes, leading to a decline in homeownership rates and a widening wealth gap.

The Widening Wealth Gap

The wealth gap between the rich and the poor has been growing for years. And the decline in homeownership rates is one of the reasons why.

Homeownership is one of the most important ways for families to build wealth. When families own their homes, they have a stake in their community and they are more likely to invest in their homes and neighborhoods.

But the decline in homeownership rates has made it harder for families to build wealth. And this has led to a widening wealth gap between the rich and the poor.

What Can Be Done?

There are a number of things that can be done to address the problem of declining homeownership rates. These include:

Reforming zoning laws to make it easier to build new homes.
Streamlining building codes to reduce the cost of construction.
Expanding access to FHA loans to middle-class families.
Reforming GSEs Fannie Mae and Freddie Mac to make them more accountable to taxpayers.

These reforms would help to make it easier for Americans to buy homes, which would lead to an increase in homeownership rates and a narrower wealth gap.

Another Big Lie: How the Government Stole Billions From The American Dream Of Home Ownership. And Got Caught!

4.6 out of 5