Owning a house has long been an integral part of the American dream, and for nearly a century the U.S. government has pursued policies to encourage and assist homebuyers. For example, there are myriad tax breaks associated with buying and selling a home, and the government now backs a jaw-dropping 97 percent of all new mortgages. But the real estate bubble has demonstrated just how misguided — and, in fact, "un-American" — this approach is, say Don Watkins and Yaron Brook at Forbes. It was a textbook case of what goes wrong when the government distorts the marketplace and meddles in private economic decisions. Here, an excerpt:
America's distinction is that it was the first nation founded on the principle that you have a right to pursue your own happiness without government interference. But the government's homeownership crusade means it gets to decide how you should live, and stick-and-carrot you into living that way.
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