Apparently Senator Charles Schumer and many Republicans think so according to the NYT. Couldn't the NYT find someone who does not think it is a good idea to hand someone a $15,000 check from the government just because they have bought a new home? For purposes of comparison, this equal to roughly 5 years worth of a kid's health care under the State Children's Health Insurance Program and three years of TANF checks. It is difficult to see how someone is doing us any favors by buying a house. In many markets, there is still a bubble that has not yet fully deflated. I suppose Schumer wants and the Republicans are hoping to keep these bubbles from deflating so that housing will be unaffordable for new families moving into these areas. Current home buyers can also expect to take a big hit when they sell their house a few years from now when we no longer are giving out $15k checks to home buyers and mortgage rates at back at 7 percent. However desirable these outcomes might be, it would be good if the NYT could weigh them against other potential uses of this money or find an analyst who could.
--Dean Baker
