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Let's also remember that the CBO was predicting in 2001 (without the tax-cuts) that the entire public debt would be paid off by 2006.
That's a joke right? That's like saying w as long as we keep injecting more crystal-methane into our heart we could stay awake for the next 8 years.
You've had easy credit, you've had a tech boom and now you've had a housing boom. What new plan do you have for the economy to grow? Green Jobs? LOL.
The economy is fully industrialized now and the only reason you haven't seen it in worse shape than it already is in terms of UE and the disappearing of social safety nets is we've been borrowing money to keep it "growing." Something you keep repeating we should do because the rest of the world will let us borrow from them until our debt reaches 3,000% of world GDP.
The Bush cuts were. That created the 10% bracket. Once they expire that bracket will go away.
Except that soaring rents have far more than offset the tax cuts, leaving buirger flippers even worse off than they were before the tax cuts. Rents in my area are up 8%-10% year-over-year.
Everyone else got tax cuts, and when they discovered more money in their pockets they spent some of it on housing. Those able to buy homes fueled the bubble and those not able drove up rents.
Except that soaring rents have far more than offset the tax cuts, leaving buirger flippers even worse off than they were before the tax cuts. Rents in my area are up 8%-10% year-over-year.
Everyone else got tax cuts, and when they discovered more money in their pockets they spent some of it on housing. Those able to buy homes fueled the bubble and those not able drove up rents.
Rising rent costs has NOTHING whatsoever to do with the Bush cuts.
The 10% bracket got created and it did put more money in that burger flipper's wallet. When they expire that burger flipper will be in the 15% bracket.
Except that soaring rents have far more than offset the tax cuts, leaving buirger flippers even worse off than they were before the tax cuts. Rents in my area are up 8%-10% year-over-year.
Everyone else got tax cuts, and when they discovered more money in their pockets they spent some of it on housing. Those able to buy homes fueled the bubble and those not able drove up rents.
Quote:
Demand for apartment residences continued to surge in 2011 as more households decided that renting was a better fit for their lifestyles, needs and budgets than owning. Overall, the renter share of households rose to 34.0 percent at year-end, the highest level in almost 14 years. Net absorption among investment-grade apartments posted the best back-to-back years since the boom of 1999-2000, while the occupancy rate rose 110 basis points (bps) from the fourth quarter of last year to almost 95 percent, an indication of solid recovery from the Great Recession. New supply remained sparse. The historically low level of multifamily starts in 2009 and 2010 led to low completions in 2011. However, starts rebounded significantly, suggesting completions should ramp up in 2012, with stronger deliveries likely for 2013 and beyond. Even so, the level of new multifamily construction in 2011 was barely half of the average annual pace from 1997 to 2006. NMHC’s most recent Quarterly Survey of Apartment Market Conditions showed that although new development activity was widespread, starts lagged— only one-fifth of respondents indicated that groundbreaking had accelerated. What’s more, almost half of respondents indicated that new development was considerably below demand. New construction financing remained an obstacle in many markets, along with outdated zoning codes, unnecessary regulations and “NIMBY” groups.
Now maybe you'll understand what I was explaining to you with people hedging themselves against downturns in different sectors of the economy. If you're poised to build houses, multifamily housing and hotels then when one sector declines you just shift to the sector that isn't. Almost everyone desires a roof over their heads and it's easy to hedge your loses in one sector by ramping up another. You do have to have foresight though and be able to understand when a slowdown is occurring.
And that, my friend, is how people grow wealth. You can't simply talk about it, you've got to be about it.
Rising rent costs has NOTHING whatsoever to do with the Bush cuts.
The 10% bracket got created and it did put more money in that burger flipper's wallet. When they expire that burger flipper will be in the 15% bracket.
The link between tax cuts and rising rent costs is well known among real estate professionals (ask any Realtor), and has been understood for a long time.
Tax cuts --> ppl have more money to spend --> aggregate demand increases --> employers create new jobs --> unemployed Junior gets a job --> Junior moves out of Mom's basement and finds his own place to rent --> rental vacancy rates decline --> rents soar.
Now maybe you'll understand what I was explaining to you with people hedging themselves against downturns in different sectors of the economy. If you're poised to build houses, multifamily housing and hotels then when one sector declines you just shift to the sector that isn't. Almost everyone desires a roof over their heads and it's easy to hedge your loses in one sector by ramping up another. You do have to have foresight though and be able to understand when a slowdown is occurring.
And that, my friend, is how people grow wealth. You can't simply talk about it, you've got to be about it.
Good source, I like NMHC and have gotten some of my best material from them. It has been difficult to finance apartment construction since the housing bubble popped.
But how do you grow wealth from nothing? I believe there is a niche housing demand just aching to be served, but I have no money to be or do anything about it.
Perhaps that is an appropriate response when abject insanity is presented to him as an "argument".
Levin shouts down or hangs up on people he can't dominate intellectually. Those he can browbeat get plenty of air time. That's the technique.
You will never see Limbaugh, Hannity, or Levin in a debate not fixed or where they don't control the mike.
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