By Kris Sayce – Port Phillip Insider (Australia) –
We guess the inference here is that because all these supposedly non-socialists advocated a dumb policy idea, it must be a perfectly sane idea for a socialist government to implement.
Of course, we would argue that socialists and conservatives alike will champion an idea if they think it will win them votes.
Furthermore, it’s laughable to suggest that the Howard government was anything but socialist — it increased public spending, raised more taxes than any other Australian government in history, and just like any good socialist (or conservative), it trampled on individual rights.
The biggest problem with any government equity stake in private homes, isn’t that it will push up house prices — that will happen regardless, due to the banking and credit system — until they eventually collapse in a heap, of course.
The biggest problem is: what the darn heck business does government have using tax dollars to invest in housing? Any housing, private or public?
Throughout history, governments have shown time and again that they are inept at operating businesses. That’s why free markets work better, and lead to greater prosperity.
But whatever. It doesn’t matter. The government will make a killing on its equity-share scheme, because as Bloomberg reported late yesterday afternoon: