the GOP is going to come back into power sometime. If not this election, then the next or whatever.
Menwhile, if progressive remain an automatic vote for Democrats who sell us out, we will forever keep being sold out.
So it's a choice between never getting listened to by our representatives v. letting the Dems know they can't just do the bidding of their corporate masters and hastening the inevitable GOP resurgence by a few years.
Not the choice I wanted, but the Dems and GOP are forcing my hand on this one. They've made it quite clear that they will not do what we want so long as they think we have "nowhere else to go".
oh, and by the formula the Fed usually uses for determining where interest rates should be, we should be at 5 or 6 points BELOW zero right now, which we obviously can't do (although we can use less accurate things like quantitative easing, and they are to some extent)
Reagan cut taxes in 1981, but he massively raised taxes a few times in 1982, including one tax hike that was the largest in US history in peacetime (%of GDP). so crediting the economy getting better in 1983-1984 for that 1981 cut and ignoring the 1982 and 1983-1988 hikes makes no sense and at the very least there's no good evidence for it.
On the other hand, GDP growth tracked interest rate changes very closely in 1979-1984
1) there have been more forclosures among the "rich" than in the poor, subprime market. This is primarily because the more well-off have just been walking away from their investment properties that are underwater.
2) The problem wouldn't have been nearly as bad if banks hadn't leveraged mortgages 30X over.
3) the tax code gives lots of breaks for home ownership. Most tax breaks are unavailable to those without lots of money and/or their own businesses. The mortgage deduction was the one were lot of people could maybe partake of it.
4) there's no real reason in theory that more people can't or shouldn't own homes. People just shouldn't own homes they can't afford. If we could better encorage more affordable housing, more people could own homes without being out of their league financially.
5) society benefits from the stability of home ownership. People take better care of their homes and tend to be much more involved with their communities if they are home owners. To the extent that we can encorage homeownership in a way that isn't too risky, we should. Lets start with not letting financial institutions break up the mortgages into tiny parts and leverage it so many times over.