Andy's Blog

Friday, April 01, 2005

Money for Housing Makes Sense

America has declared itself the great mediocrity. We mythically believe that we all have the same opportunities to get ahead. When people struggle, we think it is because they have not worked hard enough. This is not a new problem. Early last century, John D. Rockefeller amassed such a fortune, and subsequent political power, that Teddy Roosevelt (R) initiated an inheritance tax. This tax ostensibly ensures that all Americans earn their money rather than have it passed down from their parents. Essentially, TR’s goal was to equalize opportunities for everyone by preserving the American mediocrity. Americans still believe this exists, that we all have equal opportunities. Yet, the fact remains that we do not.

This is why the Duluth Area Chamber of Commerce’s recent resolution on spending $3 million public dollars on private housing is so controversial. Our goal is to help provide workforce housing for those who struggle to afford it themselves. Sure, the private market can provide housing – yet it is not for those with limited resources. A single mom with two children making ten to twelve dollars per hour is not going to afford anything the private market can provide. Simply stated, the private market is not interested in doing business with those who can not afford its prices.

Will the fact that we provided support for using $3M public dollars to help some moderate income families change the free market as we know it? I doubt it. In fact, using this money to help moderate income families become homeowners may, in the long term, do more to preserve the American way of life than anything else I can suggest. TR saw the future when he looked at the past. We should do well when we do the same.

posted by Andy Peterson www.duluthchamber.com at

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