July 2010 saw the slowest pace of new home sales since 1963. In the same month, Congress extended unemployment benefits for a fourth time, adding another $34 billion to the deficit to help out 2.5 non-working Americans.
The Associated Press says, “High unemployment, slow job growth, and tight credit have kept people from buying homes.” In other words, a bad economy is scaring people away from purchasing new homes.
It doesn’t take a rocket scientist to figure out what’s wrong with our economy. It just takes a conservative.
When Mr. Obama went to Washington, he promised a lot of people a lot of things. He was going to pay their mortgages! He was going to pay their gas bills! He might as well have promised everyone a unicorn ride over a double rainbow and fat-free ice cream that actually tastes good.
The government doesn’t work that way. The government can’t take care of you; only other people can take care of you. The 99 weeks of unemployment Joe Schmoe is entitled to? Someone is paying that. Someone is paying for him to not work, instead of using that money to hire someone who will work.
Since the employer is busy paying someone to not work instead of paying someone to work, no goods or services are produced or rendered. No goods or services, no sales. No sales, no money. The employer goes out of business, and the few employees that were left working there are now out of work. But don’t worry about them; they’ll get unemployment checks from the government. To pay for them, Uncle Sam is going to raise taxes on the companies left standing. And then … those companies might have to downsize to cover the costs on the new taxes. It’s a vicious cycle.
New home sales are down because people are afraid to make such large purchases in times of economic uncertainty. We’re living in economic uncertainty because no one knows what new mandate or regulation is going to pass into law next. The tax burden of these entitlement laws falls on employers, who pass it along to their employees and consumers in the form of layoffs and higher prices.
Free health care? Ninety-nine weeks of unemployment benefits?
Sure. At the expense of the American Dream: A decent job and a beautiful new home.
Cross Posted at The Stir