The inflation in real estate prices is a big problem, and is likely to be bigg.
I support an alternate way for the gov't to support housebuying: 50% tax credit on house payments (interest and principle), with some lifetime maximum ($2, 3, 400 000?). The churning of mortgage loans in order to keep high interest payments in order to keep a larger deductible has to have lots of negative influences. I don't see any big reason the gov't should hugely subsidize houses of more than $800 000. The huge mortgage payment subsidies is one of the worst welfares for the rich. I don't like the Left's desire to punish, er, tax the rich -- but I also don't like the Reps wanting to use gov't to give the rich welfare. This idea comes from a desire to see a flat rate tax, like Russia has and Slovakia will be getting (1.1.04) -- until a different system of helping workers afford homes is put into place, a flat rate tax will be really unlikely in the US. Tom ----- Original Message ----- From: "Fred Foldvary" <[EMAIL PROTECTED]> To: <[EMAIL PROTECTED]> Sent: Saturday, December 06, 2003 2:41 PM Subject: Re: Real wages constant since 1964?! > > If you measure wages in desk calculators instead of dollars, I'm sure > > they've gone up substantially! ;-) > > --Robert > > And if you measure wages in units of a real-estate price index, they have > gone down substantially! > Fred Foldvary > > ===== > [EMAIL PROTECTED]