Today’s Calamity: First Cash for Clunkers, Now Cash for Homes?

Nicolas Loris / September 10, 2009

Despite being extremely wasteful and creating questionable environmental benefits, the government labeled the cash for clunkers auto program a successful program that exceeded expectations. It worked so well – why not subsidize (again) the housing industry while we’re at it?

Detailed in Section 203 of the Waxman-Markey cap and trade bill is a program that subsidizes the purchase of new Energy Star qualified “manufactured homes” (homes built in a factory, such as mobile homes) for people currently living in manufactured homes built before 1976 (Sec. 203, b).

Qualified recipients are eligible to receive up to $7500, and the old home must be either recycled or rendered “unusable;” furthermore, all members of the owner’s household must not exceed 200 percent of the applicable federal poverty level for income. (more…)