Kamala Harris wants government to help first-time homebuyers by making the age-old mistake of using government subsidies. What she should have learned from her economics and history classes, however, is that government subsidies uniformly fail – a fact proven by America’s dangerous education debt crisis.
On the one hand, we have to give Kamala Harris some credit for being honest. She has refused to answer any questions about her policies in the face of criticism about her past liberal views. Despite that, her first policy proposals turned out to be every bit as liberal as people warned she was – if not more.
For instance, Madam Deficit, as I refer to her, has proposed to provide first-time home buyers with a $25,000 government check to use toward a home purchase. Of course, that would add to the national debt, which is already soaring above $35 trillion and, along with $2 trillion annual deficits, is directly leading to inflation.
Inflation, of course, results in higher interest rates. In turn, higher interest rates increase the costs of purchasing homes. As such, Harris’ “fix” to that is to make the home affordability crisis even worse.
Beyond that, however, Harris’ program fails basic economics.
When government artificially increases demand through subsidies prices tend to........