On the birthday of Ludwig von Mises it is appropriate that the greatest living economist and philosopher, Thomas Sowell, takes out his rapier and puts a few holes in the old canard of government promoted affordable housing.
Many years ago, when I first started reading Sowell, he made rent controls and housing supply and price manipulation a target of his ire. He can still do it because the government and finance/banking apparatchiks and mandarins still think they can make a silk purse from a sow’s ear.
You might have forgotten rent control and the Community Reinvestment Act and eliminating red lining and proper lending practices–you might have forgotten, if you are an idiot and were asleep when hell broke loose in the capital and investment markets less than 10 years ago. Well government slugs never learn. The Fed never learns–they are political and irresponsible and debt can be kicked down the road. So can the cost of bailouts. Currency debauchery–what currency debauchery?
As Sowell has always pointed out, markets are manipulated to our dismay and harm.
The housing and mortgage nonsense and the misconduct of the bankers and lenders, urged on by the government cheap housing push created the crash of 2008. So Freddie and Fannie are still in business and the socialists still believe in the free lunch or loose credit and lending to create the illusion of prosperity.
Did you know that the economy is great and unemployment is back down. Sure it is.