In the #News #Economy #Politics - Own Nothing But Debt, And Be Happy

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The White House is furious. Oh, really?

Own Nothing But Debt, And Be Happy

The American Dream of owning a home is slipping away as housing prices soar and mortgage rates double, pushing ownership beyond reach for many. While proposals like 50-year mortgages may lower monthly payments, they ultimately increase total debt. The real issue lies in inflated housing costs—driven by government taxes, fees, tariffs, and excessive red tape that raise construction expenses and slow new development. To restore affordability, the focus should be on expanding supply in the following ways: cutting regulations, lowering material costs, and strengthening the construction workforce, instead of extending loans or creating new forms of debt.

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The growing push for ultra-long loans, like 50-year mortgages and 15-year car loans - a rumor that has not been confirmed from the White House, signals a troubling shift toward lifelong debt and declining ownership.

The average first-time homebuyer is now 40 years old. In a 50-year mortgage, even with early retirement of the loan in a rising interest rate environment which is highly unlikely, the typical homeowner will spend their entire adult life paying interest to banks instead of building equity. While extended mortgages lower monthly payments (a tactic social media influencers tout amid rising rates), they massively inflate total interest paid, enriching lenders and locking borrowers into endless debt.

Rising property and inheritance taxes ensure that even paid off homes are never truly “owned.” For instance, a $400,000 mortgage at 6% over 30 years costs about $463,000 in interest, but stretching it to 50 years at 7% raises total interest above $1 million, nearly tripling the debt burden. Similarly, 15-year car loans on rapidly depreciating vehicles leave owners underwater long before the loan is paid off.

While some see these policies as short-term fixes to boost affordability or confidence, they risk creating a society where citizens continually rent their lifestyles from banks and governments. Even if these policies are unintended, the expansion of the debt-based system in a rising interest rate environment, moves America closer to a reality where, in effect, “you will own nothing, and be happy.” Remember that slogan from the World Economic Forum?

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