Wednesday, September 28, 2011

An Important Conversation on Housing

One of the key issues in the upcoming election is the housing market. We have seen the attempts from the Obama administration to "prop up" the market, which failed for many reasons (read more about why in our recent post "Housing Report Card"). We need to help "average" Americans understand that one of the worst variables for any economy is slowly declining housing prices.

There are many, many reasons that Ron Paul's message is gaining strength. People are drawn to his ideas on liberty, freedom, individual responsibility, sound money and small government. Perhaps the single most important of all his ideas is his understanding of core economic principles. We must help people understand these principles on a level that they can relate to and in a way that will help Ron Paul earn their vote.

The best medicine for our country is to get housing prices rising again. There is nothing that the government can do to force this to happen. Prices will only begin to rise once they have fallen to equilibrium levels where supply meets demand and buyers come into the marketplace. Yes, there will be pain for many homeowners. However, the overwhelming result will be positive for million upon millions of Americans who will be able to find new jobs, feed their families, and look toward a brighter day as our economy begins to grow again.

President Obama likes to talk about "shared sacrifice" in terms of the rich paying more taxes. However when we talk about shared sacrifice that would come as a result of a free market correction in the housing market, nobody cares to listen. President Obama also likes to talk about what is "fair". Well, which is more fair... Taking money from responsible Americans, wasting a large percentage of it, and then giving the rest to a relatively few people that need help? Or, allowing the housing market to self correct, which will hurt some people that have, for one reason or another, put themselves in a weak financial position as a result of their own decisions. The sacrifices of those individuals, although difficult, will benefit our entire country, and in many ways the whole global economy! If we want to talk about real "sympathy", than we should be choosing the course of action that puts the responsibility on those that own it, and provides benefits and financial relief to the maximum number of Americans. Ron Paul's plan would do just that, but unfortunately we must overcome the sound bites, pretty speeches, and the propaganda of telling voters what they "think" they want to hear. It will be hard work, but this is our time and we are up to the task!

TAGS: Ron Paul Housing, Housing Market Solutions, Tea Party, Obama Failed Policies

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