Head-Scratcher of the Day

Apparently, the White House wants to stimulate the economy by building affordable housing:

In conjunction with this event, Treasury released a new report (pdf) yesterday showing that, through June 30, states have awarded more than $4.1 billion in Recovery Act funds to provide affordable housing, and that this funding has saved or created more than 80,000 jobs building or rehabilitating those housing units. Mayor Fenty noted that, with support from Treasury and the Recovery Act, the District of Columbia has created 7,510 new units of affordable housing and preserved over 4,600 units since 2007.

The Treasury report released yesterday also shows that state housing authorities have leveraged these sub-awards with financing from private investors and other federal programs to fund the construction or rehabilitation of more than 57,000 housing units – more than 53,000 of which are for low-income residents.

This Recovery Act program is helping to not only create new jobs, but improve the long-term strength of our communities. These are exactly the type of investments we need to make in order to continue the momentum of this recovery and lay the groundwork for future prosperity.

Perhaps I’m missing something. Don’t we already have an enormous inventory of unsold housing? I recognize that what’s on the market probably doesn’t fit into the affordable category but does building more housing sound like a good use of stimulus funds to you?

I could add that I drove down to Midway Airport last week and on the way saw hundreds of units of subsidized housing that had been boarded up, vacant except, possibly, for squatters. Demolishing those eyesores and contributors to urban blight and making the space available for other uses would be a better use of funds than building more housing.

Indeed, if you want a good snapshot of the history and conundrum of the American economy you could do worse than driving down Cicero Ave. from, say, the northern border of Chicago to Midway Airport. On the way you’ll pass mile after mile of empty factories, empty lots where factories and warehouses used to be, and shopping malls with no shoppers that have been built where factories and warehouses used to be.

1 comment… add one
  • Drew Link

    In a previous life I managed a welding supplies and industrial gas retail outlet on Cicero just south of the Ike. We spent half our time chasing the hookers out of the parking lot. Now the business is gone.

    And I’m sure you know where those friendly window washers at Cicero and I-55 live. Its all just a mess.

    I can’t believe they are talking Cabrini Green II just after that cesspool was cleaned out.

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