Housing Boom Research Paper

It’s difficult to exaggerate the influence the housing boom made on the economy as a whole. During the very height of the obsession, the funding, creation, and furnishing of homes had become the dominant motor of the U.S. economy. And while everyone recognized the affluence, few released apprehension about the forthcoming expenses. Additionally, the profits made by real estate “flippers, homeowners removed billions of dollars per year from their homes. This process converted houses into “tax-free ATM machines.” People used the money to refurbish their homes, go away on trips, pay for schooling, purchase cars and electronics, and mostly live better lives than they would have if their homes had not increased in worth. In the book Irrational Exuberance economist Robert Shiller determined
A collapse was now not only unavoidable, it was unquestionably essential in order to rebalance the economy. Economists have professed that if people cannot spend, the government needs to take a stand and do it for them. Unfortunately, the government has no money. All the government has is what it accumulates in taxes and what it borrows or prints. As of right now, this process is creating enormous civic debt. Although the figures may look bad, we still have the ability to sell most of the dues on the open market. But our “good fortune” can’t possibly be everlasting. Eventually we will have only two options: default (tell the creditors we can’t pay, and negotiate a payment) or inflate (print more money to pay off growing debt). In any case, either decision will lead to “painful consequences.” Default is the better alternate. Regrettably, while inflation is worsening, it’s also the more governmentally