First Principles

Please continue to talk about this. I love that so many people are talking about how unfair it is for people who can afford their mortgages to pay for other people’s mortgages, but I’m actually surprised at how few people consider the 30% who don’t even have a mortgage.

Think of it this way:

1) Everyone with a mortgage gets a tax deduction. Renters do not. Therefore, people who irresponsibly got too much house *paid in less* than renters.
2) The speculation priced us out of the market. We waited.
3) The legislature and president just decided to spend money to pay for some mortgages… but not for my rent! (Am I *less* out of a house if I have to pay rent and can’t because I lost a job?)
4) The money will either come from levying higher taxes on me or by depleting my savings through inflation, making it that much less likely I can afford a house.
5) They prop up the prices of homes, pricing me further and further out of the market.

I paid more taxes. My savings will be destroyed. I still have to pay my rent. I’m even further and further away from ever possibly being able to afford a home.

Personally, I do not want a handout. I will pay my rent. I just moved to a house with a lower rent, in fact. Why can’t people who don’t pay their mortgages just move to a house they can afford? They’re not on the street — they buy a cheaper house or (*gasp*!) they have to stoop to renting.

Seriously — spread the word about the renters. It may sink in a little better.

This was the situation a friend of mine found himself in a few years ago in the Bay Area.  This is something a lot of people aren’t thinking about, but should.

So to you, commenter “silvermine” – doing my part to spread the word.

And to all you liberals interested in “fairness” – chew on it, and explain how punishing the responsible and rewarding the foolish is sound economic policy.