Able Quote by Thomas Sowell
“The government has brought on the housing problem, partly by these very low interest rates, which encouraged many people to go way out on a limb. They've brought it on by highly restrictive building policies, which have caused housing prices to skyrocket artificially. And they've brought it on by the Community Reinvestment Act, which presumes that politicians are better able to tell investors where to put their money than the investors themselves are. When you put all that together, you get something like what you have.”
About This Quote
Source Book: Basic Economics, 2000
He blames low interest rates, restrictive zoning, and the Community Reinvestment Act for inflating housing prices, suggesting policy missteps create the crisis.
In simple terms: Policies like cheap loans and strict zoning drive up housing costs.
Key Takeaway
Reevaluate housing policies to curb price spikes.
Themes
economics
housing
policy
inflation
government
Mood
analytical
critical
Type
economic
political
When to use this quote
- Homebuyers
- urban developers
- policy makers
- financial analysts
Key Concepts
Monetary policy
urban planning
regulation
market dynamics
Questions to Reflect On
- What alternative factors contribute to housing unaffordability?
- How can policy balance growth and affordability?
A Different Perspective
Complex causes may be oversimplified.
![“As Representative Barney Frank put it: I believe that we, as the Federal Government, have probably done too little rather than too much to push [Fannie Mae and Freddie Mac] to meet the goals of affordable housing and to set reasonable goals. . . . The more people, in my judgment, exaggerate a…” quote by Yaron Brook](https://sms4smile.com/quotes/img-quotes/52b/yaron-brook-25046_affordable-housing_as-representative-barney-frank-put-it-i_3169840.jpg)
