Forty Acres and a Mule

Redistributing wealth in America — the smart way

Americans are a “giving” people. Not only are millions of dollars donated to charitable organizations every year, but every time there is a world crisis, like the recent Haitian earthquake, thousands of us reach for our cell phones and “text message” $10 to help out. There is no element of force in this — we do it because it makes us feel good to help out our fellow man. Our deep sense of morality and responsibility tells us it’s the right thing to do.

Since Joe the Plumber’s interaction with Obama on the campaign trail, astute Americans have become increasingly alarmed.  The socialist concept of “weath re-distribution” — a mandatory “take from the rich and give to the poor” — doesn’t mesh with our idea of “charity”.

On the other hand, there is a way we could play equalizer without anyone complaining.  It is simple, straightforward, and would actually increase the self-esteem and pride of the poor.

We can give them a house.

Before you choke on your coffee, let me explain.

Thanks to the economic disaster that has unfolded over the past few years, some areas of our country have become so unpalatable that everyone has left.

A prime example is Detroit. Right now there are literally thousands of empty houses for sale in Detroit, some for as little as $1.  Sure, they’re not in the best of condition, and most are in areas where crime was once the main industry. (Yes, it’s pretty bad when even the criminals have moved out!)

Rather than continue to pay for Section 8 housing, why not buy these folks a $1 house?

Granted, some renovations would be required … but it would be far cheaper to give them a Gift Card to Lowe’s or Home Depot than to continue to pay their housing costs.

In this scenario, the person would select their house, and be given a “Homeowner Renovation Card” with a fixed amount on it — say $25,000. They could either use it for building materials and do the work themselves, and/or select a pre-approved building contractor to do the repairs for them. An oversight agency, acting the same way a bank does during a construction project, would approve the amount “charged”, and inspect it afterwards to insure that the repairs were made.

One of the key components for the new resident is the “choice” aspect — being able to select the kitchen cabinets and bathroom fixtures they want, pick out paint colors, light fixtures, and so forth. The “free house” would become genuinely theirs because they created it.

Before you know it, not only would huge areas of Detroit be revitalized, but participants would enjoy the pride of homeownership for the first time. Owning their own place would give these folks a new sense of responsibility, in sharp contrast to being stuck in the “projects”, where walls are routinely kicked in and little care is taken to avoid damage — because after all, it’s not their place — why should they care?

Would this save money? You bet!  One year of Section 8 housing payments for a family can easily run $1,200/month, or $14,400 per year. The $25,000 “renovation credit card” represents less than two years of rent payments; late in year 2, as families drop off the rent rolls, expenses would drop dramatically.  Do the math — 2,000 people at $1,200 per month for rent costs Social Services a whopping $28,800,000 per year!

Even better, it would bring jobs to the city.  Carpenters, plumbers, and electricians would have a steady stream of work.  Corner stores would re-open so that people could run in for a gallon of milk.  New homeowners would happily buy a lawnmower so they could cut their grass.  Someone is bound to open up an auto repair place nearby.  You get the picture.

No real need to entice employers to these areas, either, although undoubtedly they would come anyway.   If your only expenses are property taxes, water and electricity, you could easily manage with a part-time job, the welfare payment you already get, or your disability check.

On the other hand, leaving those homes vacant is counterproductive, expensive, and dangerous. The city still has to repair the water lines, maintain the streets, and police the area…. and take action as the abandoned homes gradually fall apart, creating serious hazards.

Yes, we can… create one program for redistribution of wealth that everyone can support.