According to The Wall Street Journal, the top 10% of earners in the United States now account for 49.7% of all spending.
This is the definition of an unhealthy economy.
But that’s not news. A truly healthy economy can never be built on government intervention or artificially low interest rates. Rather, it thrives on free markets, property ownership (we can help with that!), and financial independence.
So, how did we get here?
For starters, the Federal Reserve’s constant money printing inflated asset prices. That’s why homes are so expensive right now — and why people don’t want to bail on their <5% mortgage rates.
Society has also normalized excessive zoning laws, building restrictions, and government-backed mortgage programs that limit supply and drive housing costs through the roof (pun intended).
And it’s not like bailouts and subsidies are helping individuals build wealth (though they are impressively common).
Meanwhile, in a healthy economy, these tragedies are replaced by:
- Widespread opportunity for wealth-building through ownership, investment, and entrepreneurship
- Homeownership as a path toward financial stability
- Fewer regulations across the board
- Market competition to drive down prices and interest rates
- Private mortgage solutions that help people buy homes on their own terms
Here’s what we mean:
In a free-market economy, people accumulate wealth via entrepreneurship, investment, and property ownership, i.e., productive activities. Yet, currently, Big Government insists on creating artificial financial bubbles that “help” in the short term and crush us over time.
That is quite literally the opposite of productivity.
In the same way, owning a home is generally more productive than renting because people get to pay for their own asset, rather than a landlord’s. But zoning laws, bad monetary policy, and government-backed mortgages make purchasing property unnecessarily challenging.
A free-market housing system resolves these issues through fewer regulations (and fewer bad deals). In turn, homeownership becomes more accessible to the middle class.
We see evidence of this all the time in places like Texas and Florida, where housing costs are low compared to the heavily regulated markets in California and Massachusetts.
It’s really this simple: Less government = more competition = better services at lower prices.
But that can’t happen when corporate bailouts regularly reward failure and guaranteed loans give lenders no incentive to offer competitive rates.
Instead, we need more mortgage companies offering creative solutions like:
- Lower down payment options
- Adjustable-rate mortgages (We never up-charge you on these!)
- Financing for self-employed individuals
There’s no reason why the economy — and particularly the housing market — needs to remain on life support. In time, a free market can turn things around.
Because a healthy economy doesn’t need to rely on the government to manipulate markets.
The dream? To live in a world where anyone can build wealth through hard work, smart investments, and property ownership. And until then, we’re going to continue to provide the best possible home-buying experience.
