550 homes were expected to be purchased by seeking homebuyers in the area of Prosper. There were 7 major developers in the area. Instead of splitting the 550 needed homes between the 7 developers, each developer built their own cadre of 550 homes. This meant there were, in the space of a couple years, 3,850 new homes in Prosper, when only a fraction of those were needed. Once the houses were done, the construction workers that had been relocated to Prosper to do this were laid off (because no one needed any more houses, obviously), and subsequently many foreclosed on their own homes and moved to small apartments where they are living off unemployment.So instead of responsibly building the required number of homes to match demand, all seven builders bought into the frenzy, and now the housing market in Prosper has completely collapsed.
Wait, so the reason we are in this situation is entirely due to greed? I never would have guessed.
Adam continues:
Giving [these workers] a government job for 8 years and hoping that the economy will turn around by then is not going to solve this problem, it will only delay it until those 8 years are up and the government can no longer borrow money to keep those jobs afloat. Then the government cuts funding to strengthen the dollar and lays off those people. Now you have all those people unemployed again and unable to afford the houses they bought using their government salary. The cycle begins again...I think he is mistaken here, I don't think the government will cut funding. I think the Federal Fiscal Juggernaut will just keep on down Deficit Lane as long as it can.
Unless we elect a cadre of third party candidates in 2012 (preferably a Libertarian), I see no escape from the spiraling government deficit in the near future. The Republicans and Democrats are both clearly pro-fiscal irresponsibility at this point.
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