Politics & Policy

Hate to Burst Your Bubble

. . . the housing boom is real.

By Jerry Bowyer

It’s only a bubble if you don’t know why it’s a boom. That’s why so many in the financial pundit aristocracy are worrying out loud, in front of millions of viewers, about whether or not the current housing boom is, deep down, really just a bubble.

BuzzCharts and the rest of the supply-side community know better. Because America is being governed by supply-side economic policy, our housing market is very strong. It started with the Clinton capital-gains tax cut in 1997. It slowed down during the deflationary recession of 2000-01. It restarted when the Fed ended the deflation through a series of rate cuts. It was strengthened when President Bush cut taxes in 2001. And it culminated in the economic boom that started when the president implemented the final phase of his tax cuts in May 2003. Obviously, this kind of growth can’t continue forever, otherwise BuzzCharts’ grandchildren will be building their homes on the moon. However, if it’s not a bubble, it can’t burst.

America’s pro-growth policies have also had an indirect effect on housing prices. BuzzCharts recently interviewed Scott Cannon of the Pennsylvania Home Builders Association (full disclosure, I do some business with the association), and he explained that immigration is one of the factors driving the demand for homes. The other thing Scott mentioned is the entrepreneurial revolution. It seems that business ownership is becoming so common in America that office space in the home is no longer considered an add-on — it’s standard. This means that even with all other things being equal, new homes are initially being constructed larger to accommodate the small business boom.

In short, the only thing that could turn the boom into a bubble is anti-growth policies such as tax hikes, regulation, and dollar manipulation.

– Jerry Bowyer is the author of The Bush Boom and an economic advisor to Blue Vase Capital Management. He can be reached through www.BowyerMedia.com.

Most Popular

Books

Jordan Peterson v. the Publishing Mob

Staff at Penguin Random House Canada have “confronted management” about the decision to publish Jordan Peterson’s book in an “emotional town hall,” Vice reports. Peterson’s Beyond Order: 12 More Rules for Life will be released in March 2021. Apparently, one “junior employee who is a member of the ... Read More
Books

Jordan Peterson v. the Publishing Mob

Staff at Penguin Random House Canada have “confronted management” about the decision to publish Jordan Peterson’s book in an “emotional town hall,” Vice reports. Peterson’s Beyond Order: 12 More Rules for Life will be released in March 2021. Apparently, one “junior employee who is a member of the ... Read More
Elections

To ‘Steal’ an Election

Dan has a good article on the homepage, the main point of which is that the system worked, since Trump’s efforts to reverse the election failed. Certainly I agree with him about that. But he also finds charges that Trump tried to “steal” the election “overheated.” Since I made such a claim myself, I ... Read More
Elections

To ‘Steal’ an Election

Dan has a good article on the homepage, the main point of which is that the system worked, since Trump’s efforts to reverse the election failed. Certainly I agree with him about that. But he also finds charges that Trump tried to “steal” the election “overheated.” Since I made such a claim myself, I ... Read More
Elections

It’s Only ‘Free and Fair’ When We Win

Indeed, this is astonishing: https://twitter.com/felixsalmon/status/1331295033325219840 In 2018, after two years of media spinning tales about shady Russian infiltrators in our government, 67 percent of Democrats believed that Putin’s gremlins had bored into our voting machines and altered the outcome ... Read More
Elections

It’s Only ‘Free and Fair’ When We Win

Indeed, this is astonishing: https://twitter.com/felixsalmon/status/1331295033325219840 In 2018, after two years of media spinning tales about shady Russian infiltrators in our government, 67 percent of Democrats believed that Putin’s gremlins had bored into our voting machines and altered the outcome ... Read More
Film & TV

Hillbilly Elegy: Ron Howard’s Inverted Mayberry

Hollywood knows two registers when it comes to the white working class (WWC): sentimentalizing and condescending. WWCs are either cute, neighborly, and folksy, or they constitute a tawdry, alien life form. There are 130 million WWCs in our country, and yet nobody in Hollywood has the slightest grasp of them. With ... Read More
Film & TV

Hillbilly Elegy: Ron Howard’s Inverted Mayberry

Hollywood knows two registers when it comes to the white working class (WWC): sentimentalizing and condescending. WWCs are either cute, neighborly, and folksy, or they constitute a tawdry, alien life form. There are 130 million WWCs in our country, and yet nobody in Hollywood has the slightest grasp of them. With ... Read More

The Coup That Wasn’t

Donald Trump is not done challenging the results of the 2020 election in court, and he is by no means done complaining. But there will be no “coup.” Any prospect of Trump remaining in office without a legal process that declares him the recipient of more legal votes in the decisive states has now evaporated. ... Read More

The Coup That Wasn’t

Donald Trump is not done challenging the results of the 2020 election in court, and he is by no means done complaining. But there will be no “coup.” Any prospect of Trump remaining in office without a legal process that declares him the recipient of more legal votes in the decisive states has now evaporated. ... Read More
Elections

About That ‘Broken Algorithm’

Of all the loopy assertions made at the press conference President Trump’s legal team conducted last Thursday, the one that has been most roundly derided is the since-ousted Sidney Powell’s claim that the national popular vote was such a landslide for President Trump “that it broke the algorithm that had ... Read More
Elections

About That ‘Broken Algorithm’

Of all the loopy assertions made at the press conference President Trump’s legal team conducted last Thursday, the one that has been most roundly derided is the since-ousted Sidney Powell’s claim that the national popular vote was such a landslide for President Trump “that it broke the algorithm that had ... Read More