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Rent or own a home that is the question for some the answer.
Should be -- joining us is Eugene white professor of economics at Rutgers University right incredible editorial today.
In the Wall Street Journal -- thank you for being in here you hit it you go through why renting would be a better option for many people -- how we would all be better off.
If they did -- Well yes.
What's happened is people -- -- referred to.
The -- owning homes being part of the American dream.
Yeah when I hear that I think -- we've we've and that's been really prepare us for a decision on the -- dream but really what American dream is it's it's about a marketing.
And what people -- trying to do to get you buy something which you may or may not really want.
And breaking relations with the decision to rent -- own -- home should be based on whether it's part of a long term rational.
And what's happened is that over the years.
The federal government at the behest of interest in real estate and financial industry have pushed for more more homeownership.
There is a common belief that owning a home as you know the realtors will -- -- their commercials you know great long term investment -- numbers say sometimes the opposite that's not right.
No that's right -- it really depends on.
Whether you have a low income workers are able income.
What have wrenching as it allows you the choice to move up or down in terms of the value of the home.
See what sometimes he won a lot more Tracy will be locked in.
That's that this is thinking that you covered in your group and your grandparents during the Great Depression.
And how -- gave them incredible financial freedom and let them Cheney and move with the times.
And it and rather than having all of your assets hope and hooked up in one house.
And not really being able to plan for retirement well in these are things people don't talk about anymore.
Yes the -- once vacant piece was that in the Great Depression had both prices and rents and wages falling down.
And that if you had been fixed interest mortgage you would have been -- you've been paying high interest payments but instead by renting.
As wages went down rents went down you could move to a cheaper place.
And that enabled you to save and do things like -- save for your children safe for my reference -- -- for their children's education actually save for retirement.
One more thing but what if there's inflation that it will be a great bet right if you -- don't and who -- -- -- I didn't that you're the -- didn't money inflates and you have this great fixed interest line would that make it a better decision for more people.
-- -- -- better decision but their perils on the other end to -- experience those from the late 1970s and early 1980s.
When the long term a mortgages caused a huge crisis in the ethanol industry.
He didn't thank you for being here on short changing -- professor of economic at Rutgers University incredible article read if you have -- very different point of views to some --
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