ban construction of new homes to prop up used prices/sales?

Discussion in 'Economics' started by OTCkrak, Aug 16, 2010.

  1. the overall effect would be to redistribute existing property from weak hands to strong hands.

    i dont think home builders would like this very much, maybe create a huge tax on new homes (only homes > 5k sqft).. just seems like it might give the opportunity to let people out from underwater.

    i am personally a Ron Paul libertarian but as crazy as the WH proposals come, this might not be so far fetched. can anyone with some economic training dissect this? what happens to prices when ban/quota is lifted?

    does the economy really need new home construction right now? i understand how GDP would take a hit on this, but obviously the market for home refurbishing/remodel (HD, Lowes) would surge.

    i think last month 300,000 new home sales was the figure.. if the final goal is to raise used home prices>> just stop making new homes?