Bitterroot Star

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Housing affordability

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by Bill Cavanaugh, Corvallis

Jon Tester and Monica Tranel tell you that they are going to “fix the housing crisis” and make housing more affordable. THIS IS A HUGE LIE.

The housing market is a free market, and they have no control over the price of housing. I read Tranel’s plan to fix it and like every other Democrat plan it is just a word salad of mumbo jumbo.

First off, assuming they were able to fix pricing on housing (which they can’t), there goes your equity in your home and if you bought in the last 4-5 years… oh, well, you take it in the shorts so someone else can buy a house.

We live in a free-market society and have been the envy of the world for over 200 years, yet these two economic neophytes are going to reinvent the wheel? You might as well have your electrician perform your open heart surgery.

I’m sympathetic to the price of housing, but government intervention is not the answer.

Unlike every Democrat, whose talking points include the phrase “root cause” which they never somehow get to the bottom of, I’ve got a very simple solution. THE BLOATED GOVERNMENT NEEDS TO STOP WASTING MONEY!

Rampant government spending caused this inflation (raising housing prices) and rise in the bond markets which directly influenced mortgage rates.

Say you got a mortgage for $300,000 today at 6.47%, your payment (net of tax and insurance) would be $1,891. By contrast at this point, under Trump your mortgage rate would have been 2.86% so a payment on $300K would have been $648 less at $1,243! Even worse, for that payment of $1,891 under Biden, you could have borrowed $456,662 under Trump. More home for the same payment. So you could have gotten a $550,000 home under Trump for the same payment you can buy only a $360,000 home for under Biden.

Government intervention is NEVER the answer. This is what happens when you get lawyers who think they can run an economy vs a businessman.

 

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  1. homers.ng says

    Jon Tester and Monica Tranel can certainly influence housing policy and work towards addressing the housing crisis, but “fixing” the crisis is complex and involves multiple factors. While Tester, Tranel, or any political figures can advocate for these initiatives, the overall success in resolving the housing crisis will depend on collaboration across various levels of government and the private sector, as well as public support and engagement.

  2. John Schneeberger says

    The housing market problem has various causes. Chief among them is the lack of supply of housing that was result of the sub prime mortgage meltdown, which put thousands of builders out of business. Free market policies, championed by conservatives, resulted in massive profiteering by unregulated banks. The housing crunch in Montana has been further exacerbated by wealthy individuals moving to Montana and buying up the housing stock and corporations purchasing housing as relatively risk free investments further reducing the supply of housing. There are government programs that could increase the stock of low income housing, but Republicans in Montana refuse to take advantage of them because of right wing ideology. we should be building more housing for low and moderate income people and paying for it with more taxes on wealthy individuals who have been riding high for decades now.

  3. John F Schneeberger says

    The economy collapsed during Trump because of world wide shutdowns due to Covid. Trump and congress wisely backfilled to keep people from destitution. When supply is strangled, cost push inflation is the result and hit after Biden took the presidency. If this were the result of his reckless spending you wouldn’t have seen the worldwide inflation that hit even countries that didn’t stimulate. Inflation is now down to 3%. More than when the economy was flat on its back during Covid and the price of a barrel of oil briefly dropped to zero.

    • Bill Cavanaugh says

      I agree on some points John, however the “Inflation” figure is Core Inflation which does not include Everyday items like Food and Energy nor does it include many goods and services. Have you seen your Insurance Bills Lately?
      Agree that the inflation was going to hit under Biden, however, The Inflation Reduction Act and Infrastructure Bill (Neither of which is name appropriately) were like Throwing Gasoline on a Burning Economy causing what was posted as 9% inflation but was more likely near 15% not using CPI. And those prices are not coming down so the Damage has been done.

    • Bill Cavanaugh says

      What in the world makes you think I would waste a minute of my time trying to educate the uneducated? I mean seriously…… If I got into real economic theory, I’m pretty sure your head would explode,
      You seem to overlook, that Harris is actually in the White House now. She could do Something now. What is her Plan? Give money away, increase the debt, Build Government housing and something about being Holistic? It’s like being lead by a Communist Yoga teacher.
      as Usual, you’ve got Nothing.

  5. Bill Cavanaugh says

    Sorry Wayne, that is not how this works. Biden and Harris took a wrecking ball to the economy and the USA’s Balance sheet so you need to tell us how she is going to allegedly turn it around. Trump has already fixed one of Biden’s Messes when he was elected in 2016, so he has a track record.
    Now I know you will reply with nothing about Harris and shovel us your usual Anti Trump Drivel but if you do, try not to use the ideas Harris stole from Trump.