We rarely stop to think how much of our private enterprise is held afloat by public wealth: our velvet smooth roads, constant electricity supply, running water. Sanitary sewer systems, courtesy of Jane Hull. Buses, trains, farm subsidies — public housing.
Our grandparents set up public housing. It is maintained through public funds and supplemented by the rents that people are able to pay within that structure. Low-interest mortgage insurance is available for first-time home buyers through this same program.
Much thought went into the construction of The Department of Housing and Urban Development. Lyndon B. Johnson conceived of this federal program as a part of what he dubbed “The Great Society.” The program has successfully prevented slumlords from benefiting from people experiencing poverty. It has successfully housed single mothers and people who would like to get up off the bottom rung. It is a safe place for low-income elders and ensures that our low-income elderly no longer die on the streets, penniless. Before this program, many of our elderly simply died on the streets of dehydration, starvation, or extreme weather conditions.
Many people are of the opinion that this safety net only benefits the poor. But when you look at statistics over several countries, including our country (before and after our safety net program), you see a drastic difference in the overall wealth of every constituent. People who can buy a few cleaning products, go out for the occasional movie, enjoy some leisure time at the library, and generally enjoy a safe life are of benefit to the wealthy.
“Income inequality in the United States hampers growth and forces up debt. In advanced economies in which investment is not constrained by scarce savings, high levels of income inequality lead automatically to either more unemployment or more debt. Such inequality undermines not only the health of the economy but eventually also the rich.” – Michael Pettis, Carnegie Endowment for International Peace
This illuminates why guaranteed housing was first proposed by the wealthiest man alive at the time, Nelson D. Rockefeller. The year was 1957. Like most great plans, it took over a decade to implement. So why is it that the huge majority of people who are angry about this program are in the poorest income brackets? Let’s posit an idea—we were all raised with these collective beliefs:
- Every American worth their salt can go from penniless to millionaire in one lifetime.
- If you work hard, you will get ahead. (Really vague, right?)
- We are the greatest nation on earth.
- Only lazy people are poor.
- We live in a free-market economy
What if we could do a little experiment? We simply pretend these beliefs are not true for a month. Pretend you are wearing polarized sunglasses. What comes into sharp relief might look like this:
The janitor at our school didn’t get a scholarship to an engineering school. He tinkers with ideas at home on the weekends. He will most likely retire in government housing.
That person who made it big in social media had access to tools and people that this aspiring author working at a fast food restaurant does not.
The cashier at my grocery store works really hard. In ten years, she might make four dollars an hour more than she does now.
A Black woman in middle management discovers that she trained not her replacement, but the people who are going to be placed above her.
Iraq, Iran, Saudi Arabia, China, Korea and Argentina also tell their citizens that they live in the greatest nation on earth.
A giant corporation runs our grain market. Oil cartels determine our rate of inflation.
Men on yacht cruises still decide what the going interest rate should be. Polarized sunglasses are the best things since sliced bread.