How I Benefited from the Obama Housing Policy

I am someone who has personally benefited from some of President Obama's economic policies. In addition to getting the temporary payroll (Social Security) tax break, I am now refinancing my underwater home through President Obama's Home Affordable Refinance Program (HARP). My home is now worth about $25K less than I owe due to the collapse of the housing bubble, and in three years I would be facing a significantly increased interest rate from the already high rate I have now if I were not able to refinance. I acquired my home in 2005 with a 10-year fixed rate, which would change to an adjustable rate mortgage at the 10-year maturity, because I did not plan on living there for over 10 years. But the housing crash put me in a difficult situation, as it has done for millions of Americans, and made refinancing pretty much impossible. Of course, selling the home at such a huge loss was not a viable option for me either. As I researched my refinance options, I found that no lender would have granted me a refinance loan for my underwater property on their own volition, even though I have never made a late payment. It's only through HARP that I am now able to refinance and take advantage of some of the lowest interest rates in about half a century, and it didn't cost the American taxpayers a nickel for me to do so. So thank you Mr. Obama, for helping me and millions of other Americans keep our homes with even lower monthly payments.

Thoughts on Gay Marriage

President Obama's recent announcement of his support for gay marriage sparked a firestorm of debate across the country. For Mormon Democrats such as myself, it has put us at odds with Obama on an important social issue.

Teaming Up with Other Mormon Democrats

I have recently teamed up with a few other Mormon Democrats to write about issues we care about on one website, MormonDems.com. The other writers include a soon-to-be professor at Brigham Young University and a business executive. The content on the site so far has been great and I highly recommend checking it out. I will continue to post on Latter-Day Common Sense, but the same articles will appear on MormonDems.com.

Affordable Care Act Focuses on Workers, Removes Perverse Incentives

President Obama’s Affordable Care Act (ACA) was not directed at the poorest Americans, who already have Medicaid, but at the working poor. This includes those who work full-time, but cannot afford their own health insurance policy. In addition, low-wage jobs are far less likely to provide health insurance benefits. Thus, typical low-wage earners are left on their own to purchase prohibitively expensive private health care plans. In 2010, the average cost for a private family insurance plan was $7,102. In many locales throughout the U.S., it is mathematically impossible for a low-wage breadwinner to pay for a $7K private insurance plan while paying for all other essential family expenses. What’s worse, before ACA, if one became seriously ill and required extensive treatment and thus could not work for a long period, they would often lose their job, and with it, their health insurance. Some conservatives counter-argue that only those who work hard deserve health insurance and good health care. But this argument is a non-sequitur. Health insurance is generally unaffordable for the working poor and even parts of the working middle class, who as I pointed out in one of my last posts, work more hours on average than the wealthy.

Universal Health Care Benefits Everyone, Eliminates Free Riders

Positive rights should not just be viewed through the lens of entitlement. Positive rights are similar to public goods in that they provide positive benefits to society as a whole (in economics, this phenomenon is called a positive externality). This is especially true with health care. If everyone has access to good health care, the chance of serious epidemic outbreaks declines. More people are thus eligible to work. American productivity increases because workers require fewer sick days. Healthier people spend more money on other things aside from health care, stimulating the economy. (For good explanations on health care as a public good, click here and here.)

A Minimum Living Standard in the World’s Wealthiest Country

In the last post, I illustrated how the positive right to an education is essential to a modern economy. Most Americans do not question the right to a public education, perhaps because it has been a fact of American life for over a century. Other positive rights adopted to some extent by American society, which are unfortunately more controversial, include the right of the disabled to a dignified existence, the right to food and shelter, and the right to life-saving emergency care. Most recently, through the 2010 Affordable Care Act, we adopted in principle the right to adequate comprehensive health care.