Friday, March 17, 2006

it's your fault: housing

thanks to Anonymous who gives me the perfect frame to start discussing economic empowerment and poverty issues here for a bit: It's Your Fault.

so, to kick us off, let's read about how It's Your Fault if you don't have affordable housing.


ding said...

crap. i have to fix the link.

PHrustrateD said...

The high cost of being poor isn't only the monthly penalty poor people pay when they can't keep $5000 in their bank account. A bigger example can be seen when asking who pays more for housing? The person who spends $250 a month for a SRO and a shared toilet? Or the person with a $250,000 home and $1000 a month mortgage?
At first, of course it looks like the person with the home. Over ten years, the person in the SRO will spend $250 x 12 months x 10 years, which is $30,000. The homeowner spends $1000 x 12 months x 10 years, which is $120,000. But the person in the SRO now has nothing, and the homeowner has a home that has appreciated at 4% a year, and is now worth more than $370,000. If the homeowner sells the house, they make $120,000 profit, which means their actual outlay over ten years is zero.

"It's the poor person's own fault for choosing the SRO, which is a terribly expensive way to live. They really ought to have saved money by buying a home." This is never said, because it is the ugly truth behind the "pull yourself up by your bootstraps" conservative rhetoric of "fiscal discipline."