Do you feel stuck in your current home because your current interest rate is so low and new mortgage rates are astronomically high? Never fear, the President of the United States has a solution. Joe Biden wants to hand out $10,000 "tax credits" to anyone who sells their "starter home" to lock in a fresh seven percent mortgage on new digs.
Why is that utterly moronic and a deal you absolutely should not take? We'll get there, but as with everything dealing with left-wing politics, there's a bigger play being made.
For homeowners looking for a new place but worried about giving up their lower mortgage rate, I'm proposing a $10,000 tax credit if they sell their starter homes.
— President Biden (@POTUS) March 21, 2024
That means more folks can get into houses that suit their needs, unlocking affordable homes for first-time buyers.
Regarding the practical effects of this proposition, Democrats are like the kid who touched the hot stove and chose to continually slam their hand back on it again and again. How many different industries have to be destroyed by subsidies before left-wingers realize their socialistic ideals don't work?
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If you've been alive for more than a few years, ask yourself what would happen if Biden's proposal were to be put into effect. The answer is simple: Real estate prices would rise, perhaps dramatically.
How do we know that? Because when we look at sectors like healthcare and higher-level education, subsidies have actually made them more unaffordable. You can't subsidize your way out of reality, and the reality is that mortgage rates are sky-high under Biden due to his economic policies. Any attempt to fix that that doesn't include lowering mortgage rates will only make the situation worse.
Biden doesn't care about the practical repercussions, though, and that's where his larger plan comes into effect. This isn't really about making housing more affordable. It's not even really about housing at all. It's about winning elections. The dude who has multiple houses and burns through taxpayer money like fire through dry brush has no concept of what normal people are going through. What he does have is a cynical plan to buy votes from ill-informed people who get big eyes when they see $10,000 being promised.
The truth is, in the best-case scenario, that amount of money wouldn't even cover the first year of increased interest payments on a new mortgage. Does that sound like a good deal to you when the typical family looking for a larger home is going to be taking out a 30-year mortgage?
No matter. Just throw a big-sounding number in the face of desperate, hurting Americans, and con them into making a bad financial decision for short-term political gain. That's the Democratic Party way. Socialism has caused the collapse of more countries than can reasonably be kept track of, but let's do it again as long it results in enough low-information voters keeping Biden in the White House.
Democrats continue to try to put bandaids on the wounds they caused, and all they are doing is prolonging the suffering. The best way to save people the maximum amount of money long-term is to do what it takes to get interest rates down. The savings difference between that and some ridiculous "tax credit" is massive. It's not even comparable. Americans need to look at Biden's latest shiny object and tell him to pound sand. He caused this crisis, and he should not be allowed to buy his way out of it with taxpayer money.
