If the US economy doesn’t figure out something else to build than new houses we are in deep deep trouble. For decades we fooled ourselves on the health of the economy as we kept building more and bigger homes. And we ended up with far more than we needed.
So let’s follow the age-old advice - “when you find yourself in a hole - stop digging”. The last thing this economy needs to invest in for the foreseeable future is more houses. Let’s reduce the subsidies for new home construction (and maybe add a tax or two on them). Let’s declare our economy the post-home-building economy and let entrepreneurs (not the government) find ways to invest our resources in ways that will generate exports to the rest of the world. Little Johnny will just have to share a bedroom with his big brother. And Johnny will be shipping widgets off to China in a few years rather than becoming a carpenter.
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