A few weeks ago I had the pleasure of sitting down with new County Commissioner Greg Brotherton. The word was out that he was actually interested in doing something about affordable housing and not just talking about it.
We agreed that the permit system and Growth Management Act needed some changes. I believe he will actually tackle these areas. We also talked about the role of the Federal Reserve and their creation of another asset bubble. We can’t do much about the private banking cartel known as the Federal Reserve, but understanding it is critical as we look at innovative ways of dealing with the housing crisis.
The same is to be said about the fractional reserve system of banking.
It has been my experience that an affordable house for the working poor is $70,000. Without allowing the lower middle class and working poor into the “asset class” of owning a home, they will never advance up the economic ladder. The Federal Reserve offers cheap money to the wealthy. Companies borrow this cheap money to buy back stock in order to raise stock prices. The wealthy are able to borrow and buy real estate assets (which drives up prices). The rich get richer and the working poor are priced out of the asset class. The percent of their income going to housing skyrockets.
So, the goal should be to build $70,000 starter homes. This can be done.
I support Mr. Brotherton’s efforts.