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Face It, Home ownership Leads To Longer Unemployment (We need a Mobile Workforce of Renters)
Business Insider ^ | 08/06/2011 | Philip Greenspun

Posted on 08/06/2011 7:06:51 AM PDT by SeekAndFind

NYT Economix says that the average length of unemployment is the longest ever recorded, up to more than 40 weeks (compared to less than 15 weeks in the downturn of the late 1940s). According to the Census, home ownership rates have been growing gradually since 1950, as has the duration of unemployment.

Let’s look at a couple of reasons that increased homeownership could lengthen unemployment periods. Let’s consider mobility. There is a large variation in demand for labor across states and regions. Homeowners are crippled in terms of mobility compared to renters.

The homeowner, especially in a state with a shrinking number of jobs, may need months or years to sell a house and move. He may delay the move for months in hopes of landing a local job that will spare him the pain of paying a 6 percent real estate commission. A renter can pack up, tow a U-Haul, and be on the other side of the country within a month.

A renter may feel more urgency about earning enough money to make monthly payments. A landlord can get a non-paying tenant evicted, in most states, in a matter of weeks

(Excerpt) Read more at businessinsider.com ...


TOPICS: Business/Economy; Culture/Society; News/Current Events
KEYWORDS: antifreedom; antiproperty; communism; globalism; home; house; renting; unemployment
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To: nobdysfool
Sounds to me like advocating for the majority of the populace to give up on owning property, and just be migrants, nomadic little worker bees. Let the fat cats own all the property, and return to a feudal way of life.

Such nomads would not buy houses. They would not buy appliances. They would not tend to buy new cars. Being on the move a lot of the time, they would tend not to buy much at all. They would tend not to marry, or would stay married for short periods. They would have fewer children--they would even have fewer pets.

Yep, this sounds like paradise.
21 posted on 08/06/2011 7:30:30 AM PDT by Nepeta
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To: Mouton

Yes, it is.


22 posted on 08/06/2011 7:30:32 AM PDT by SuzyQue
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To: texmexis best
It is quite easy to move to another part of the country and lease your owned home until the economy turns around.

Maybe easy to arrange, but being an absentee landlord is a nightmare.

23 posted on 08/06/2011 7:30:57 AM PDT by poindexter
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To: Christian Engineer Mass
The pharoahs of this world would have us all digging their roads and monuments named after them if they could.

Ann Coulter has Wall Street's number. It is not about business, not even a semblance of it. Wall Street is to a sound business what a heroin dealer is to a pharmacist.

Unfortunately, corporations are run by Wall Street types who have no problem raping their own business if it will give them a good quarter.

Of course they place no value on the intellectual capital of their business that is possessed by their employees.

They get up every day to play a game that puts more cash in their hands no matter the cost.

24 posted on 08/06/2011 7:31:21 AM PDT by hopespringseternal
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To: mamelukesabre

If put into effect quickly, it will wreck the housing industry farther. Yes it is a gift to those who seek to buy a home as the tax system is subsidizing a portion of the interest payment. So what? My income is not the government’s money to give back to me...it is mine to turn over a portion for the proper administration of the Republic. Tax preferences are part of the equation. FWIW, earners used to be able to deduct taxes paid on tobacco and interest on consumer loans, they were removed so rates could be adjusted downward. Think that will happen now, think again.

Don’t confuse the US debt situation with consumer debt...whether someone gets a mortgage interest deduction or does not (like me), has no affect on the debt or deficit not considering the higher taxes they may pay.

In my best world, there would be a flat tax paid from dollar one including a tax on benefits but that is never going to happen either.


25 posted on 08/06/2011 7:32:56 AM PDT by Mouton (Voting is an opiate of the electorate. Nothing changes no matter who wins..)
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To: poindexter

“Maybe easy to arrange, but being an absentee landlord is a nightmare.”

A good Realtor will take care of the home and renters for you. There is no reason for it to be a nighmare.


26 posted on 08/06/2011 7:34:02 AM PDT by texmexis best
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To: Beelzebubba
The special tax treatment granted to home mortgage interest has subsidized a population into an economically inefficient non-mobility.

If they eliminate that deduction, the housing industry will completely collapse and we will go into a depression so deep that it will make the 1930's look like the Reagan recovery.

There was a time when ALL interest payments were deductible. Now only interest on business purchases and home mortgages are deductible. FWIW, if they eliminate the home mortgage interest, I, and millions like me, will just walk away from our homes.

Property ownership has been the American dream since the time of the Pilgrims. The libs (and you apparently) are all set to destroy that dream and make us just like Europe.

27 posted on 08/06/2011 7:36:46 AM PDT by P-Marlowe (LPFOKETT GAHCOEEP-w/o*)
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To: Mouton

“This is the opening barage to remove the interest deduction for home mortages...bet on it.”

DING DING DING...we have a winner...

“Home ownership is a drag on the economy”


28 posted on 08/06/2011 7:37:44 AM PDT by Crim (Palin / West '12)
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To: mamelukesabre

“To avoid paying interest people will save a bigger down payment, make bigger monthly payments, and choose shorter duration loans?”

With what?

Money doesnt grow on trees....


29 posted on 08/06/2011 7:39:43 AM PDT by Crim (Palin / West '12)
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To: darkwing104

Lets just trade our houses for tents and become Nomads...


How about we let the free market operate, and let people freely decide for themselves whether they want the benefits and disadvantages of tying themselves down to a home.


30 posted on 08/06/2011 7:40:01 AM PDT by Atlas Sneezed (Government borrowing is Taxation without Representation)
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To: Crim

“Home ownership is a drag on the economy”

Normally it is 1/6 of the economy.


31 posted on 08/06/2011 7:40:01 AM PDT by texmexis best
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To: Beelzebubba

Your screen name suits you.


32 posted on 08/06/2011 7:40:14 AM PDT by hedgetrimmer
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To: SeekAndFind
A large percentage of the population should never own homes, make that a large percentage of people are renters. The mortgage companies and realtors putting warm bodies in homes does not mean these people will accept the responsibility of home ownership. And the so called government tax credit is social engineering and should be stopped, the market worked fine before the government stated screwing with it.
33 posted on 08/06/2011 7:40:21 AM PDT by org.whodat (What does the Republican party stand for////??? absolutely nothing.)
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To: P-Marlowe

The Founders knew property = freedom.

The people this forum insisting on higher taxes and less ownership by American citizens are soviet socialists.


34 posted on 08/06/2011 7:42:19 AM PDT by hedgetrimmer
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To: Chode

that interest is profit for the bank, the bank pays the taxes on it, yes?
~~~~~~~~~~~~~~~

good point. however, I am in ayn rand mode and thinking “starve the beast”. currently, our beast is not just uncle sam, but also insurance companies and mortgage selling banks and wall street and labor unions.

We need to get back to a manufacturing/mining/ag economy. Ive been compiling data and it turns out the nations with the largest ag/mining output per capita have the highest standard of living, highest income per GDP, and greatest ag/mining output per ag/mining worker. The US population is getting too heavy in finance, government, education, retirees, and deadbeat dependents.

I’m not saying education is unimportant. But there is at least 50% of all courses offered at colleges/universities that are absolutely worthless and pointless and these are the classes mostly taken by students on government assistance. it’s got to stop. we are only lining the pockets of universities with gold and for no reason. It is one of the reasons we are going bankrupt and losing our AAA rating. There is a similar distortion via government intervention going on in the medical/health fields.


35 posted on 08/06/2011 7:42:50 AM PDT by mamelukesabre (Si Vis Pacem Para Bellum (If you want peace prepare for war))
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To: P-Marlowe

And there was also a time when no interest was deductible. Which came first the chicken are the egg.


36 posted on 08/06/2011 7:43:43 AM PDT by org.whodat (What does the Republican party stand for////??? absolutely nothing.)
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To: SeekAndFind

The scenario of renting your owned home while working on a long term project or permanent job is very common in Texas as many oil people move around the world every 4 or 5 years.

I guess we are just more used to it than others, but is is quite common here in Texas and no one regards it as a big deal or something that is rare or difficult to do.

We do it every day.


37 posted on 08/06/2011 7:43:43 AM PDT by texmexis best
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To: SeekAndFind
"(We need a Mobile Workforce of Renters)"

I thought that was what the illegals were for.

38 posted on 08/06/2011 7:44:06 AM PDT by Flag_This (Real presidents don't bow.)
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To: mamelukesabre

“We need to get back to a manufacturing/mining/ag economy.”

LMAO...you’ll need to get rid of every libtard with a lawyer first....

Good luck with that...


39 posted on 08/06/2011 7:45:15 AM PDT by Crim (Palin / West '12)
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To: Beelzebubba
How about we let the free market operate, and let people freely decide for themselves whether they want the benefits and disadvantages of tying themselves down to a home.

Too many elected officials don't believe in Free Markets.


40 posted on 08/06/2011 7:45:29 AM PDT by darkwing104 (Lets get dangerous)
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