Fifty years ago, when I got out of the Navy, a family could afford to buy a house and handle a mortgage on a single paycheck. A friend of mine bought a brand-new house for $21,000. Having grown up poor in public housing, owning a home was more than just a purchase or an investment. It was the reward for years of hard work, and proof that the American dream was alive and well.
We don’t have that America right now; home prices are at an all-time high across the U.S. A new home costs almost half a million dollars. “Starter” homes in over 200 American cities now cost over $1 million. As a result, too many young people in this country think they’ll rent for the rest of their lives. It shouldn’t be this way. We need to do something about this and reinvigorate
the American Dream.
President Trump has done everything he constitutionally can to tackle America’s cost-of-living problem and make homeownership more attainable. The poverty rate reached its lowest point in its history last year under President Trump, and we’ve created over a million private-sector jobs. But he can’t fix this alone.
Congress created this problem, and we need Congress to help solve it.
The first thing we need to deal with is the runaway spending that drives inflation and interest rates. Year after year, Congress spends more money than it takes in. Right now, our deficit sits at $2 trillion every year. That excess spending fuels high inflation. Inflation forces interest rates higher. Higher interest rates make borrowing costs higher. Right now, mortgage rates are above 7%. That’s enough to force potential homebuyers out of the market.
If American families can’t spend more than they earn, why should Congress?
Florida is proof that it’s possible to turn things around. Before I became governor, foreclosures in our state were soaring, and new construction was virtually non-existent. When I became governor, my goal was to get government out of the way. I cut taxes and fees over 100 times. I slashed red tape anywhere I could find it. The result? Our housing market boomed. Families could afford homes again. New builds increased competition and drove down prices.
I want to implement the same strategy across the nation: reduce taxes, cut regulations, and let the free market work.Many far-left socialist politicians acknowledge the same housing affordability problems, and they’re offering big government as the solution. But socialism is not the answer; it never is. Socialism takes away freedom, and it raises costs. If you want confirmation, talk to anyone in South Florida who fled here from Cuba or Venezuela.
The answer is freedom: get government out of the way and radically re-empower the American people. That’s why I introduced The American Dream Accounts Act, which would create a tax-advantaged savings account that every American can use to set aside funds specifically for a down payment on their first home. Put simply, hardworking Americans would get to keep more of their own money and make their own decisions about starting their future. That’s the American Dream in action.
That’s one solution, but to deal with the whole problem, Congress needs to completely overhaul how it does business. We need to commit to ending Washington’s spending addiction and slashing through its mountain of red tape. I started my Rescuing America project to both illustrate how government is at the root of our problems and chart the course to get us back on track.
The American Dream worked for me, as it did for countless others in our great country’s history. If we want to keep it alive for our kids and grandkids, then everyone needs to push their representatives in Congress to get serious right now about taking on big government and big spending. Let’s get to work.
Rick Scott is Florida’s senior U.S. senator and former two-term governor.
This article originally appeared on Palm Beach Post: Congress can do more to make housing affordable again | Opinion
