Kamala’s $25,000 Home Down Payments Can’t Buy Trust
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Key Takeaways
- Critics fear Kamala Harris's proposal to give first-time homebuyers $25,000 would backfire by driving up housing prices.
- Many view the proposal as economically unsound, arguing it would trigger inflationary pressures like those during COVID or create a bubble like 2008.
- People also worry it would lead to increased taxes, national debt, and rampant fraud, disproportionately burdening the very groups it aims to help.
Our Methodology
Demographics
All Voters
Sample Size
4,500
Geographical Breakdown
National
Time Period
4 Days
MIG Reports leverages EyesOver technology, employing Advanced AI for precise analysis. This ensures unparalleled precision, setting a new standard. Find out more about the unique data pull for this article.
On Aug. 15, Kamala Harris proposed providing up to $25,000 as a down payment for first-time homebuyers, creating significant online controversy. Voter conversations are polarized with support, skepticism, and outright criticism. Disagreements about addressing housing affordability and the current economic climate largely depend on political views.
Reactions to Subsidizing Down Payments
Support
Harris’s proposal for financial assistance for first-time homebuyers generates support within her base. They view the initiative as an essential and compassionate measure to address increased financial barriers to homeownership.
Mostly Democrats, this group argues assistance could alleviate significant upfront costs and increase access to housing for aspiring homeowners. Yet, the underlying sentiment also acknowledges persistent housing affordability issues under the Biden administration.
Optimistic Democrats praise Harris's vision to stimulate housing production. They talk about affordability, down payments, the housing crisis, inflation, taxes, financial burdens on Americans, and current economic policies.
Opposition
Critics of Harris's proposal say providing such financial aid would inevitably increase housing prices. This, they say, negates any supposed benefits of subsidizing down payments. This group discusses inflation, government intervention, and market distortion.
Some also criticize the specifics of the policy, saying it does not discriminate based on citizenship. This, many conclude, would mean illegal immigrants would be eligible for the home downpayment subsidy.
Kamala Harris wants to give $25,000 to illegal aliens to buy American homes. This will only further exacerbate the housing shortage in our country. It's a disgrace.
— JD Vance (@JDVance) August 16, 2024
We should be making it easier and more affordable for American citizens to buy homes.
Skeptics say an influx of funds for buyers increases demand pressure but does not increase supply. As a result, sellers would likely increase asking prices, proportionate to the government subsidy.
Doubts about the efficacy of providing taxpayer funds to first-time homebuyers compounds fear of inflation and the country’s broader economic situation. Critics say this excessively interventionist proposal would exacerbate existing financial burdens for everyone, rather than alleviating pressures for first-time buyers.
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It’s Been Done Before
Many Americans doubt the feasibility of Harris's claims, with some calling it a "campaign lie." People ask questions like, "where is the money coming from?" and "government can't solve this" regarding housing affordability.
People worry that finding funding for very large $25,000 grants will increase taxes and worsen national debt. If this happens, low-income and working-class Americans would end up with a heavier burden, despite Harris’s assertions that her policies aim to assist them.
Much of the conversation discusses historical precedents and similar failed government interventions. Voters draw parallels between Harris's progressive proposals and past economic crises like the 2008 Great Financial Crisis. They caution against repeating previous mistakes of government intervention in the housing market.
Those who embrace free market economics say "artificially boosting purchasing power" leads to economic bubbles. They say the result would be long-term affordability issues rather than short-term solutions.
Stimulus Drives Inflation
Critics point to historical examples of government spending spurring increased inflation. Research from MIT shows government spending was a major cause of 2022 inflation spikes. The U.S. government's large-scale fiscal interventions during COVID are linked to heightened inflationary trends as they injected funds into the economy when demand was already recovering.
Many also worry about fraud which could end up exploiting the renter class. The fraud rate in government programs varies, but the Paycheck Protection Program (PPP) experienced notable fraud issues. Estimates suggest between 1% to 15% of PPP funds may have been fraudulently obtained. The speed at which the program was implemented and challenges in oversight during disbursement allowed for increased fraud.
In general, emergency and rapidly deployed funds are more susceptible to fraudulent claims. The exact fraud rate can depend on the specific program and preventative measures. However, fraud rates often rise to 10% in government programs.
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Harris’s Economic Record with the IRA
Discussions about the Inflation Reduction Act (IRA) also highlight skepticism about its effectiveness. People say the IRA is largely responsible for recent inflation surges. Voters believe it exacerbated inflation. rather than reducing it. They say it was misleading in its goal and point out that Harris was the deciding vote to pass it.
A recurring theme in conversations is that excessive government spending drives inflation. Americans understand higher prices and financial strain on working families often comes from the government printing and spending money. There is also a growing cynicism toward establishment and government actions.
Many special view Harris’s policies as more about societal control than economic well-being. This housing subsidy proposal and Harris’s recent retail price control proposal often elicit accusations of communism.
However, despite rampant criticism, some still view the IRA as lowering prescription drug prices. This group tends to view it as positive, though acknowledging skepticism regarding the overall impact of the legislation.
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