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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Tradelite who wrote (1150)	12/10/2001 4:07:51 PM
From: yard_man	Read Replies (1) \| Respond to of 306849

I don't single it out as a drain on income. I think your reasoning generalizes the multiplying effects of a subsidy while completely ignoring the costs. Subsidized credit costs us all eventually because it results in missallocation of resources -- some things will priced higher than had individual choices on both the producer and buyer side been exercised -- some things will be priced lower -- and eventually we are all poorer in terms of real economic goods. The 'class' of my employer has benefitted for years from subsidized lending -- the idea was that the higher per customer cost would preclude the investment from being made and electricity would be too slow making it into rural areas. It's a nice theory -- similar theories have been applied to farm subsidies, etc. Almost all such reasoning focuses solely on the benefits and never on the costs ...