Our government program to encourage home buying is coming to a close. Was it as good idea ? Certainly, it was for real estate agents! At least with the “cash for clunkers” program, the country as a whole (possibly) benefited by encouraging production of new, efficient cars and the retirement of low MPG cars.
Why didn’t we do the same thing for houses ? OK, not the same thing, but how about this idea (in case we’re crazy enough to exend it): Pay out the $8,000 directly to buyers of newly built homes. For buyers of used houses, put the cash towards sealing, and insulating, and generally making the old house efficient. Either way, contractors and their employees are working.
I will name this complicated economic concept “Have something left after the party’s over” , with the other very, very complicated concept (especially not understood by bankers) “Spread the wealth”.