Government subsidies create a disincentive to be responsible.
In this case I would have to disagree.
Unlike welfare or foodstamps, this program will not work for irresponsible individuals, and in fact is simply an incentive to encourage people to take on the responsibility of home ownership.
Whether it works or not is another story.
I would be interested in seeing stats a year from now on how many people squander the help they received.
There's already an incentive to take on the responsibility of home ownership. It's called learning marketable skills and making responsible choices in life so one can afford to own a home.
This program is going to create problems you can't even imagine. There will be special interest groups hiring lobbyists to make sure they're on the lists of those qualifying for grants. There will be lawsuits for discrimination and the like. The cost of homes will rise because of the increase in demand.
While the intent of the program may seem noble it is simply a government wealth redistribution scheme to buy votes. The grants are financed by taxes taken from other working Americans who, themsleves, may be trying to buy a home.
It wont work for irresponsible individuals? No kidding! And what if the majority of these homes end up in default anyway? Talk about money down a hole!
Oh, and this really is just a prop to the real estate industry, which is the last pillar of this economy not in retreat. If the housing industry goes south, he's screwed for '02, and '04 too, probably. Stupid, expedient politics. Bush, again.