AAF: Biden’s Plan to Kill American Dream, Repeat the 2008 Crisis

For more information, please contact AAF Policy Director John Shelton at jshelton@advancingamericanfreedom.com

AAF: Biden’s Plan to Kill American Dream, Repeat the 2008 Crisis

TOPLINE: Government interventions caused the 2008 housing crisis. Today, President Biden is risking a repeat of the Great Recession with his disastrous policy proposals that are reminiscent of the policies that caused the Great Recession. The Biden Administration is planning to:

• Guarantee second mortgages, assuming more than $3 trillion in new liabilities,

fueling inflation and contributing to further instability in mortgage markets. • Weaken credit standards, luring families into riskier loans. • Increase housing prices with expensive new subsidies, further driving

homeownership out of reach for working class Americans. Reality Check:

• Housing affordability is a supply-side problem. • The U.S. is currently facing a shortage of more than 7 million homes. • Biden’s proposals would subsidize demand, making the problem worse. Conservatives should:

• Use the power of the purse and the Congressional Review Act to stop Biden’s

disastrous policies. • Get Washington out of the mortgage business altogether.

o End government conservatorship of Fannie Mae and Freddie Mac. • Increase the supply of housing by returning surplus federal lands back to the

states. • Eliminate the EPA and other federal agencies that needlessly drive up the cost of

home construction through burdensome regulations. • Reduce Biden-era regulations that are driving housing prices. Since President

Biden took office, housing prices have inflated by 21%, in part because of Biden’s regulatory attack on domestic energy production, construction and manufacturing.

“Home ownership is an essential part of the American dream” and

“fundamental to our way of life” — President Ronald Reagan Additional Resources:

• “Return of the Housing Godzillas,” Wall Street Journal • “The Mortgage Reform That Could Unleash the Next Big US Stimulus,” FT • “U.S. Housing Supply Short 7.2 Million Homes,” Yahoo News • “Regulation: 40.6 Percent of the Cost of Multifamily Development,” NAHB and NMHC • “Addressing the National Housing Shortage By Building on Federal Land,” JEC • Shelter from the Storm: How a COVID Mortgage Meltdown Was Averted, Mark Calabria

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