[quote=bearishgurl][quote=jstoesz]No one argues that the housing mortgage deduction is not simulative of housing prices…obviously it is. Is it stimulative for the economy in general? Seems to me, the answer is no. It incentivizes people to put their savings in non productive assets. If houses were cheaper and the market not artificially skewed towards housing, that money could be put to much better uses. The same thing goes for you alls argument on business investment deductions.[/quote]
jstoesz, which better uses than investment RE would you suggest for one’s money they have currently set aside for investment purposes?[/quote]
First off, BG, people who buy real estate for investment purposes do not receive a mortgage tax deduction. So, I think this is a bit of an apples to oranges disagreement regarding what I was talking about.
With that said, housing investment seems more like speculation, much like buying metals. Gold is a non productive asset, but “investing” in it does stimulate mining jobs etc. Just like housing results in construction jobs, but it doesn’t have the same stimulation as investing in companies. Companies are built to further produce additional value from that investment (increasing efficiency and wealth for its investors). A house or a bar of gold can’t produce crapola.
