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Government insanity or the case for limited government:

As reported in the Pittsburgh Tribune-Review on March 31, 2009, subsidized housing is sitting empty. How can this be? Well it seems that energy-efficient mandates and prevailing-wage rates on subsidized housing projects are making the homes so costly to construct that the subsides are insufficient to allow the subsidized home to compete with private homes on the market.

The subsidized houses are costing $300,000 or more to build! Through loans and subsidies government and non-profit organizations can get the house price to the poor reduced to $137,000 or even $129,000. (Poor being defined as 80 percent of the local markets median income) Then 40% to 50% of the home is privately financed and the remainder is publicly financed.

The problem is that single family non-subsidized homes are being sold in the area for an average of $90,943. Who wants to purchase a home for $129,000 when a home is available for $90,000?

Carpenters who normally get paid $20.00 an hour get paid $40.00 an hour under the state’s prevailing wage to construct these homes.

So you thought you were supporting “affordable housing” by voting for the Big Government Liberals? You thought you were caring for the poor by voting for the Big Government Liberals? WRONG, your taxes are being used to support UNION labor, consultants, inspectors, and “green” construction. Why yes, this is the same union labor that contributes big money to the Big Government Liberals so they can perpetuate their power. These are the same consultants, inspectors, and “green” construction companies that often form PACS to provide political contributions.

Ever wonder why after billions and trillions of dollars the percentage of the poor among us remains static? It never was about enabling the poor. It has always been about perpetuating themselves in power by exploiting the poor and making “liberals” feel guilty for not paying more into the system. What is the chance the Liberal fools will wake-up? Even when confronted with the facts the Liberals continue to neglect the poor. What is the real solution? The solution is limited government that frees the market to provide affordable housing to more people. At least if you want to provide subsidies, pay subsidies directly to the poor and allow them to use market forces to get competitive housing. Only a non-caring Liberal would try to force the poor into housing at $129,000 when it is available in the market at $90,000.

March 31, 2009 Wexford Bob

 

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