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The Flawed Circular Reasoning of Kamalanomics

September 27, 20243 Mins Read

During the recent debate, Kamala Harris supported the flawed left-wing belief that increased spending can solve all problems. This belief is evident in her proposed subsidized housing plan.

Harris seems to think that federal subsidies will lead to more housing, lower prices, and address the inflation issue caused by the Biden-Harris administration.

She highlighted her idea to construct 3 million new homes in four years and introduce a $25,000 housing credit for first-time buyers. It is assumed that these 3 million homes will be federally subsidized, and the homebuyer credit will boost demand in the market.

However, the problem lies in giving benefits to everyone except those not involved in the housing market who will eventually bear the cost. Moreover, Harris will face challenges passing these ambitious proposals through Congress and financing them.

Building 3 million homes would require $720 billion, assuming each starter home costs $240,000. There is also the issue of a scarcity of building supplies and construction workers to fulfill this construction target.

Harris’s assumption that a federal program can navigate through local regulations and identify suitable building sites overlooks the existing reasons why these houses are not being built.

Furthermore, the $25,000 first-time home buyer credit might cost an additional $75 billion if all 3 million homes are available under this scheme. The overall expenditure could rise to over $795 billion if more individuals qualify for the credit.

Even if the funds are secured, increased government spending does not guarantee a solution. The failures of the American Rescue Plan Act and the Inflation Reduction Act by the Biden-Harris administration have highlighted the drawbacks of excessive spending.

The distribution strategy for Harris’s new housing initiative is unclear and is likely to be influenced by political factors rather than actual housing needs.

Recent analysis shows that grant programs from 2021’s Infrastructure Investment and Jobs Act disproportionately favored blue states. Another program aimed at expanding internet access in rural areas has not been successful despite a substantial allocation of funds.

The administration’s past failures in constructing electric vehicle charging stations and the resultant inflationary effects should serve as a cautionary tale for Harris’s housing proposal.

In conclusion, Harris’s housing plan attempts to solve problems with more federal spending, which has not proven effective under the Biden administration. Harris’s alignment with initiatives like the Green New Deal and guaranteed income proposals suggests a potential increase in inflationary spending pressures if she assumes office.

The key issue with left-wing spending policies is their flawed circular reasoning. Instead of relying on public spending, prosperity stems from private sector investments, leading to higher wages and a more sustainable economic environment. Harris’s approach of promising more of what has already failed under Biden does not offer a viable solution.

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