There is an affordable housing crisis in the United States, one that the Congress is struggling to address. The so-called crisis is that housing is getting more affordable. The generations now in power consider this a crisis because they were counting on being able to sell their homes to younger people at inflated prices, consigning them to a life of poverty, to finance a retirement that hasn’t saved for. The wealthy consider it a crisis because they are taking losses on mortgage bonds, and those who manage their money might receive somewhat less inflated pay packages next year. And those in some suburbs consider it a crisis because housing in their neighborhood might become affordable to someone no wealthier than they were when they first purchased, and different from them in other respects. So after 15 years of reductions in subsidies for the poorest, with public housing and Section 8 vouchers a perennial target of scorn, we now see desperate calls for the government to take on hundreds of billions of dollars in future liabilities to subsidize the past purchase of McMansions, and the hocking of houses to buy SUVs and plasma screen TVs and settle gambling debts for the ever-growing casino industry.
What everyone seems to be forgetting, is that housing becoming more affordable is a huge benefit to most current Americans, and all future Americans. And what everyone seems to be forgetting is that many if not most of those who will be forced to pay back those billions of dollars in future liabilities have probably been worse off, on average, than those who borrowed, spent, and are now facing foreclosure, and those who lent to them.