Housing, Student Loans and Government "Assistance"

Housing Bubble Jr. reads in part:

"Here's a puzzle: Try to figure out what we're describing.

It costs a lot of money, so much that most people have to go into debt to buy it. It has considerable intrinsic value, but it is also understood to be an investment. And it is a status symbol--indeed, almost a necessary condition for achieving middle-class status.

Its acquisition by as wide a swath of the population is widely seen as a social good. Thus the government heavily subsidizes it through tax incentives and other means. That, however, creates an artificial demand that drives prices up and, in a vicious circle, spurs demands for more subsidies. Efforts to make it more easily acquired for minorities, who by objective standards tend to be less qualified, compound the problem.

In the current economy, it has turned out to be considerably less valuable than promised. As a result, many Americans are under water, with debts that they will not be able to pay off easily.

What is it? A house, but that's the obvious answer. We're thinking of a college education. The similarities between the housing bubble and the higher-ed bubble are remarkable, aren't they?"

Yes, the similarities between the housing bubble and the higher-ed bubble are indeed remarkable. Both involve heavy amounts of government "assistance," subsidies and control.

It's a reminder of the warning contained in the old joke, "We're from the government, and we're here to help." Beware of government help, fellow citizens.

What if the politicians had the attitude that they work for the taxpayers, and began to treat the money entrusted to them as if it were held in trust for the benefit of the general public?

What if they believed that they were public servants, and started acting as good stewards or fiduciaries with respect to taxpayer supplied funds?

What if we the people were to insist that government officials function as fiduciaries when acting on our behalf?

Would we then have the housing and student loan debt debacles that we're now experiencing?

I doubt it very much, but I'd sure like to find out sometime soon.

Thanks. Bob.