good example of federalism--federal and state governments working together to serve citizens. question remains as to whether this is good public policy--aiding borrowers. Is it?
Wednesday, June 23, 2010
Michigan to offer $154M in U.S. aid to borrowers | freep.com | Detroit Free Press
Michigan to offer $154M in U.S. aid to borrowers | freep.com | Detroit Free Press
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According to this article, more than 17,000 households will be assisted by the $15.5 million in federal funds. The three options of using this assistance will be: 1) Mortgage payment assistance. 2) Rescue funds for Mortgage payments and 3) Federal Matching funds for Mortgage payments. All of these options will give anywhere from up to $750 a month to overall assistance of $10,000. Along with four others Michigan in one of five states that has suffered the most from the housing crisis. One statistic that I found shocking from the article was Michigan has had a 35% decrease in average home sale prices since 2005. This is an example of federalism, and in my opinion, a great opportunity for Michigan to get back on track.
ReplyDeleteI believe in big government. I was supportive of the stimulus package and I am supportive of what the Obama Administration is doing for Michigan now. I believe that it is the job of the state government and the federal government to work together to help those citizens that need assistance, and that is exactly what this aid to homeowners will be. However, I can understand why some people may be wary or critical of the idea of loaning money to people who already borrowed money for their homes. Yes, this is risky. But it is necessary. People in our country are taught to live above what they can actually afford. After graduating high school, students are encouraged to go to college, even if it puts them in debt thousands of dollars. And, after graduation we are encouraged to buy a home. Why not when you can get the house for next to nothing down and pay it off for decades? We have credit cards that allow us to just pay the minimum, so we stay in debt. Our society has debt built into the system. Without it, many of us would not be getting a college education or living the way we do. Is this sustainable? Maybe not. But, for the time being, it is how our society functions.