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Q1)Should the government intervene directly in the market for housing and to promote home ownership? Justify your answer. Consider some of the options available for intervention and explain their strengths and weakness. [SEE ATTACHED FILE 1 (OVERVIEW)TO SEE REPORT THIS QUESTION IS REFERRING TO]

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Should the government intervene directly in the market for housing and to promote home ownership?

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This was a well-written report, but did not really give any concrete suggestions. Whenever we ask what a government policy is the answer really is a political and not an economic one. Government policy really should be aimed at achieving a higher social good for the country. These decisions, despite what some may believe, should not always be decided on economics alone. The question is should the government intervene at all to influence the natural movements of the market? The answer is an obvious yes. If so, what level of home ownership is desirable for the country as a whole and what should the government do to achieve this goal?

From a national community building and social standpoint, the goal would be as close to 100% home-ownership as possible. This is because people become more responsible when they own their own home. They also take a much more direct interest in the health of their community. The sum result of this is lower crime and social problems in general with the resulting lower cost to government and society. Homeownership also encourages wealth creation and consumption that supports local and national businesses.

Of course, not ...

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