What is the rational support for this argument?
The housing market is an extension of the economy, not a driving force behind it (i.e. people have jobs and make some money and then spend some of that money on housing...not the other way around).
Housing is certainly important...but it is not THE prime mover of an economy.
I say this as someone in the RE business.
Manufacturing.
The prices of housing is way out of wack with respect to wages. Businesses and individuals working are overtaxed. Gov’t needs high real estate prices to justify their overtaxation. The problem is too much gov’t at all levels. Gov’t size and tax rates needs to be scaled back to 1950’s rates. The housing market is dysfunctional because there is too much gov’t. All US markets are suffering the same fate. Too much gov’t. One big Ponzi scheme.
save
Their notion is that bigger government, Keynesian spending, and the class warfare ‘fair share’ persecution of producers in the private sector to pay for it, would somehow generate a recovery.
That's what the Marxists said, all right; all they've actually had in mind, however, was the Chicagoization and Detroitification of America. From the Marxist perspective, things are coming along just fine.
We are in the hole because of the cretans in DC PERIOD!