Tag: government subsidies

Fannie Mae and Freddie Mac Take on the Free Market

Michael Hoffman | United States

The privatization of Fannie Mae and Freddie Mac seems to be on the U.S. Treasury and Trump administration’s agenda, and with everyone predicting that a recession is on the horizon, it’s starting to feel like 2008 again.

From the Austrian perspective, allowing the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation to revert back to quasi-market-based institutions is optimal because it will open up competition and more realistic price discovery in terms of home financing and real estate prices (though not as much as we’d like to see).

With over 50 proposals to overhaul the real estate market, including a “smaller” role in the housing market for the Federal Housing Administration (FHA), the plan seeks to aid those who want to see housing become more affordable. Sounds good right? Not so fast. As the proverbial saying goes, be sure to read the fine print, since no one will be more affected by these potential political and economic changes than prospective American homeowners.

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Tax Deductions Are Not Subsidies, It’s Your Money

TJ Roberts | United States

It is a popular lie that tax deductions are nothing more than subsidies. Advocates of this idea claim that the state funds certain behaviors by eliminating taxes on such actions. The problem, however, becomes apparent when one asks whose money is on the line. It should be abundantly clear that they are not subsidies because tax dollars do not belong to the government. Rather, they belong to the people the state forced to pay.

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How The Government Ruined Elon Musk

By Mason Mohon | @mohonofficial

Elon Musk is a brilliant man. His work ethic, entrepreneurial spirit, and idealism make him a major role model in my life. He looks at things differently than anyone else and builds things other people fear to even imagine building.

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