John Tamny’s recent article contains four important points:
1. Our obsession with home ownership created the current recession, and current government policies continue our economic malaise.
2. Our housing policies drive $ to dirt–money that could be used to fund business investment goes to ground, partly in search of a hedge against inflation. Tamny discusses this in more detail in previous work about the effects of the soft dollar.
3. Being tethered to our homes is part of the reason the unemployment problem remains–”The home is an anchor to movement necessary for labor to find job opportunities,…we are subsidizing individual immobility.”
4. The best plan? Get out of the way!
The great economist Joseph Shumpeter is quoted: “I recommend no policy, and propose no plan.”
To view the entire article, click here.
John Tamny is editor of RealClearMarkets, a senior economic adviser to H.C. Wainwright Economics, and a senior economic adviser to Toreador Research and Trading (www.trtadvisors.com). He can be reached at firstname.lastname@example.org. He also does a weekly column in Forbes magazine.