By: Mario Lopez
Posted: Jun 25, 2022 12:01 AM
Published on Townhall.com
Consumer spending drives the U.S. economy. Historically, American consumers have pushed us into economic expansions and pulled us out of economic doldrums.
But what if we told you that one of the basic tools the American consumer uses for everyday purchases is rigged against us all and hurts the economy, with low-income Americans and small businesses taking the biggest hit?
In a new video, the Market Institute’s Charlie Sauer examines the rise in sales prices and interest rates of homes across the country and scrutinizes the higher-than-anticipated costs Americans face in the home-buying process. In the video, Sauer zeroes in on zoning and land use issues, tariffs on products such as lumber and steel, and companies such as The Work Number that put upward pressure on prices.
Sauer notes that many cities have zoning practices like parking requirements and prohibitions on multi-family homes, which have made construction more expensive, and limited housing supply – exacerbating racial and economic inequality. Zoning isn’t the only issue, though, as Sauer highlights how restrictive trade policies on major homebuilding components such as flooring, iron, and steel pipes are subject to tariffs, making housing more expensive.