Calculated Risk points out Robert Shiller’s article in the New York Times on the subsidization of homeownership in America. Shiller asks why we should subsidize homeownership, beyond short-term expediencies such as the fact that since we have a lot of unemployed construction workers, we could reduce unemployment by subsidizing homeownership (as long as we can subsidize new home construction as opposed to just trading houses). Of course, the reason we have a lot of unemployed construction workers is that we over-subsidized housing for the past decade and a half; hence Shiller’s question.

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