Introduction
The government’s involvement in the decline of housing and the subsequent loss of wealth during the foreclosure crisis cannot be overlooked. As a former board member for Community Home Solutions, a non-profit organization working to combat foreclosures, I have witnessed firsthand the devastating impact of government policies on homeowners and the wider economy. In this essay, we will explore the government’s failed attempts to promote affordable home ownership and discuss the urgent need for Congress to address the economic challenges its citizens face.
The Failure of Andrew Cuomo, Fannie Mae, and Freddie Mac, the Federal Reserve, and Administrations from Presidents Clinton, Bush, and Obama.
In August 2008, The Village Voice published an article highlighting the role of Andrew Cuomo, Fannie Mae, and Freddie Mac in the housing crisis. www.villagevoice.com/andrew-cuomo-and-fannie-and-freddie/ Their misguided push for increased home ownership ultimately resulted in losing an estimated 7-14 trillion dollars in wealth. While banks thrived, ordinary Americans bore the brunt of the crisis, with many losing their homes and livelihoods.
The Impact on Jobs and Housing in NH
New Hampshire experienced a significant loss of carpentry jobs during this period. However, the state has gradually recovered from these setbacks over time. Despite this recovery, the government’s latest plan for high-density housing continues to pose affordability challenges. Even with minimal finishing work, the costs remain exorbitant, making it difficult for aspiring homeowners to find affordable housing options. Meanwhile, higher-priced units within the same developments offer luxurious finishes, such as crown molding, top-tier countertops, and high-end kitchen cabinets. The persistent high lumber prices exacerbate the situation, further hindering accessibility to quality housing.
The Burden of Economic Adjustments
The government’s increased spending, without corresponding investment opportunities, has forced the public to bear the burden of economic adjustments. Job layoffs have become commonplace, and families are forced to tighten their budgets by up to 25%. Moreover, homeowners struggle to afford insurance premiums, as they continue to soar. Congress must prioritize addressing these economic challenges faced by its citizens.
The Call for Congressional Action
Congress cannot continue to overlook the plight of its constituents. It is unacceptable that those responsible for passing regulations and massive acts overspent by an estimated $7 trillion and have shown no willingness to either protect jobs or homes or cut spending. Congress must take immediate action to alleviate the economic burdens faced by its citizens.
Conclusion
The government’s role in the decline of housing and the subsequent loss of wealth cannot be denied. As we have witnessed through the failed attempts of individuals like Andrew Cuomo, Administrations from Pres. Clinton, Bush, Obama, and institutions like Fannie Mae and Freddie Mac, and the Federal Reserve, their push for increased home ownership came at a great cost to ordinary Americans. Now, as the government proposes high-density housing solutions that remain unaffordable for many, Congress must step in and address the economic challenges its citizens face. Only through proactive and responsible action can we ensure stability, provide affordable housing options, and safeguard the financial well-being of the American people.
Ken Sheffert
Former Hampton NH State Representative
Hampton NH State Representative for Reelection.
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