There are a lot of ideas that have been discussed about how to best deal with the economic downfall that resulted from the governmental shutdown of almost all private businesses. Small business loans, $1200 checks to almost every American and pumping 35.2 billion taxpayer dollars into the mortgage market are all ideas that have already been implemented. Rep. Ilhan Omar, the self-proclaimed democratic socialist Congresswoman from Minnesota, shared a new idea via Twitter… “Cancel Rent”
Needless to say, this is one of the most ridiculous statements that she has said. Saying that more government is the way to fix an economic problem, that the government has caused by forcing almost all business to shut down, is ludicrous. Yes it is a travesty that about 1/4 people in America have lost their jobs or a substantial portion of their income, but this is not the way to fix it.
Canceling all rent, which is unconstitutional on it’s face, would have a devastating and lasting impact on the economy. According to avail, a company designed to give individual landlords the tools that allow them to successfully manage their rentals, 55% of rental units are owned by private landlords. This means that most of the people that would be hurt by “canceling” approximately $40.4 billion of rent per month would be hard working Americans who rely on the rental income to pay their bills.
On top of that, those on the left have given no realistic timeline on how long they want the COVID-19 relief to last. The mortgage foreclosure process starts after 4 months of no payments, meaning that there will be mass foreclosures, the likes of which would make the 2008 recession pale in comparison, on these rental properties forcing the renters to be kicked out anyway.
Just stopping, for an unknown number of months, a $45.6 billion a year industry would cut further, the already dwindling, amount of cash that is flowing through the economy.
Congresswoman, maybe if you did not advocate for the forceful shutdown of nearly all business we would not be in the situation we are in now. More government does not fix problems caused by the government.