Wednesday, August 23, 2017

The Front Man For The Next Housing Crisis

The Trump regime isn't just repeating the mistakes of the Dubya years on housing by dismantling Obama-era protections, they're not just going down the same path with banks playing Big Casino games, they're gutting affordable public housing ahead of time through HUD and Ben Carson, so when this bubble does burst the pain is going to be astronomical.  Alec MacGillis:

The Trump cuts would mean that several programs would be eliminated entirely, including the home program, which offers seed money for affordable-housing initiatives, and the $3 billion Community Development Block Grant program that Carla Hills, Ford’s HUD secretary, had praised to Carson at the dinner. In New York, CDBG helped pay for, among many things, housing-code enforcement, the 311 system, and homeless shelters for veterans. But the grants were also relied on in struggling small towns, where they paid for sidewalks, sewer upgrades, and community centers. In Glouster, Ohio, a tiny coal town that went for Trump by a single vote after going for Obama two to one in 2012, officials were counting on the grants to replace a bridge so weak that the school bus couldn’t cross it, forcing kids from one part of town to cluster along a busy road for pickup. “Without those funds, it would just cripple this area,” said Nathan Simons, who administers the grants for the surrounding region. HUD, for all its shrinking stature and insecurity complex, has over time worked its way into the fabric of ailing communities throughout the country, a role that has grown only larger as so much of Middle America has suffered decline, and as the capacity of so many state and local governments has withered amid dwindling tax bases and civic disengagement. On my travels through the Midwest I’ve seen how many federally subsidized housing complexes there are on the edges of small towns and cities, places very far from the Bronx or the South Side of Chicago. People living in these places rely on a functioning, minimally competent HUD no less than do the Section 8 voucher recipients in Jared Kushner’s low-income complexes in Baltimore. In an age of ever-widening income inequality, the Great Society department actually plays an even more vital role than when it was conceived. 
But if Carson was troubled by the disembowelment of his department, he showed no sign of it. Even before the final numbers were out, he had assured housing advocates that cuts would be made up for by money dedicated to housing in the big infrastructure bill Trump was promising — a notion that his fellow Republican Kemp, among others, found far-fetched. “I’m not sure he understood how that would work,” Kemp told me. “He was probably repeating what had been told to him.” Then, a day after the budget was released, Carson downplayed the importance of programs for the poor in a radio interview with Armstrong Williams, saying that poverty was largely a “state of mind.” This, more than anything, seemed to be a crystallization of the Carson philosophy of HUD: that privation would be solved by the power of positive thinking, that his own extraordinary rise was scalable and could be replicated millions of times over. 
Two weeks later, Carson went to Capitol Hill to testify on the budget proposal before Congressional panels that would have the final say on the numbers. With Kasper perched over his shoulder, he told both the Senate and House committees that they shouldn’t get overly hung up on the cuts. “We must look for human solutions, not just policies and programs,” he said. “Our programs must reach out and so must our hearts.” The budget, he added, would “help more eligible Americans achieve freedom from regulations and bureaucracy and the ability to govern themselves.” 
Members of both parties on the panels seemed dubious. Even conservative Republicans challenged the elimination of CDBG and dismissed Carson’s repeated claim that those and other cuts would be made up for with “public-private partnerships,” noting that such partnerships depended on exactly the public seed money that the budget was jettisoning.
Carson remained unruffled. The cuts were made necessary by the “atmosphere of constraint” created by a “new paradigm that’s been forced on us,” he said, presumably referring to the desire for tax cuts for the wealthy and an even larger military. “The problem that faces us now as a nation will only be exacerbated if we don’t deal with them in what appears to be a harsh manner,” he told the Senate panel. “We have to stop the bleeding to get the healing.” 
As I watched the hearings, it occurred to me that Carson was the perfect HUD secretary for Donald Trump, the real-estate-developer president who appears to care little for public housing. He offered a gently smiling refutation to accusations from any corner that the department’s evisceration would have grave consequences. After all, Ben Carson had made it from Detroit to Johns Hopkins without housing assistance, a point of pride in his family. Not to mention that Carson’s very identity — theoretically — helped inoculate the administration against charges of prejudice. (Just last week, Carson said, in the wake of racially tinged violence in Charlottesville, that the controversy over Trump’s support of white supremacists there was “blown out of proportion” and echoed the president’s “both sides” language when referring to “hatred and bigotry.”) 
Even better, Carson could be trusted not to resist Mick Mulvaney’s budget designs. At one moment in the Senate hearing, Carson noted that Congress’s recent spending package for the current year had given the department more than it had been expecting. “I’m always happy to take money,” he said, smiling. 
Senator Jack Reed of Rhode Island, the committee’s top Democrat, was unamused. “You have to ask for it first,” he said.

The cuts are going to wreck the government's capacity for responding to the massive financial damage that is assuredly coming, at the time it will need it the most.  I don't know what else to say other than this country will be in a full-blown depression if Trump's GOP has their way, and what happens after that is anyone's guess.

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