Progressive-Democrat Vice President and Progressive-Democratic Party Presidential candidate Kamala Harris wants to fork over $25,000 to every first-time home buyer looking to buy a house to help them buy. The quick and dirty of that silliness is as follows.
Harris and her team don’t believe in or don’t understand the truism of a simple supply-demand graph that’s taught in any serious high school Intro to Econ class. Throwing money at a supply of something whose supply cannot grow as fast as the increase in money will only run up the price of that something, along with the price of the inputs to that something—and that input price inflation will slow the demand-encouraged increase of the supply of the something.
Those getting the 25 stacks aren’t going to be helped at all beyond the first few. Those getting the Harris Bucks later not only will find it difficult to find a house among that reduced and reducing supply, they’ll be no more able to afford that find than they are now.
Ignored by Harris with her gimmick are those who’ve become empty nesters and those at the other end of their lives, retirees, looking to downsize into smaller, used to be cheaper, housing. These folks will be actively harmed by the same outcomes that will render the gimmick merely useless to those first-time buyers.
Alternatively, and more likely, these Harris Bucks are just a 21st century bread and circus vote-buying scheme and who cares about those first-timers and downsizer wannabes. Richard J Daley is spinning in his grave over not having thought of this.