Question

5. Pick one of the four policies used to subsidize housing and explain the pros and cons of this policy. Of the two goals associated with housing subsidies, which does it do a better job of acheiveing?

Answer 1

Under subsidized housing policies, public housing is one of the major housing policies. Basically, this policy is used to provide affordable accommodation to the disabled, impoverished and senior citizens.

Pros and cons of this policy

Land and Resource Utilization

Advantage:

Such a policy helps to boost employment opportunities, benefit local construction industries which have a huge impact on society.

Disadvantage:   

This resource spending has the potentiality to create a wage gap in society

Below market rental prices

Advantage: For senior citizens, disabled people, this policy offers sufficient, cost-effective place or housing. Basically, to provide it, the government’s strategy is below the market rental price for this section of people. The core objective through the policy is increasing the disposable income of this section of people.

Disadvantage: It has a negative impact on the community as during the scarce resource period, public housing is a liability for a government.

The basic two goals associated with the housing subsidies are societal stability (first goal), improve justice as well as fairness (second goal)

With the public housing policy, the second goal, improve justice as well as fairness, can be easily achieved. In this context, it should be noted that justice and fairness are only improved when in the equal distribution in the society will be reduced. It is possible through this policy.