Sometimes it seems as if the housing bubble (which was the trigger for the ongoing Long Depression, or as some call it, the Great Recession) has been forgotten. That is very unfortunate – both for the success of policies designed to restart the US economy and for building a politics that could change the US political economy to benefit the 99% rather than the 1%. Authored by CPEG’s Bill Barclay, this new working paper examines the political economy of housing as the root of the Long Depression.
The paper begins by summarizing the scope of the existing housing catastrophe and then provides an overview of the policies and practices that created the housing bubble and collapse. The final two sections describe the work of the Home Owners Loan Corporation in the 1930s/40s and, using this model, outlines some possible policies to address the housing problem we face today.
Read the Working Paper (PDF)