Should the government provide housing for low income earners

Housing is an important tool which can be used by the government to influence economic development, especially among low-income earners. The government should provide affordable housing to low-income earners. Provision of affordable housing for low-income earners by the government has a lot of benefits. The individuals directly benefiting from the projects, construction firms involved in the implementation of the project, and the overall economy stand to benefit directly from the project. Other stakeholders such as employers in areas where the projects are carried out will also benefit from the project. Decent and affordable housing influences positively on education. “…children in stable housing do better in school (Powell, 749). ” Provision of affordable housing to low-income earners will save the individuals from the excessive rent payment.

The amount saved can be used by the individuals to provide better education for their children as well as improving their own education. Movement from one house to another is the major cause for children moving from one school to another. Taking the responsibility to provide affordable housing will allow the government to check on vital issues relating to construction and housing. By participating in the actual construction of the houses, the government can check on housing standards. Through providing the best-recommended standards needed for housing, the government will avert calamities related to substandard housing. The government can also take into consideration the health issues related housing, which is often overlooked by private developers when constructing houses. Provision of affordable housing will offer the much needed positive competition in the real estate industry.

Providing the services to these areas will be cheaper for the government compared to individuals obtaining the services to their houses situated in different locations. The government sources the workforce for its projects from the citizens themselves. This includes contractors and laborers. Government involvement in the construction of affordable housing will provide an employment opportunity for the skilled personnel in the country as well as unskilled laborers who form the largest proportion of low-income earners. “…building 100 affordable housing units for families through the Low-Income Housing Tax Credit program can lead to the creation of more than 120 jobs, on average, during a project's construction phase. Employers who have working stations near areas where affordable housing is provided enjoy a stable local workforce.

This is because the local workforce would not need to incur commutation cost traveling from other areas where they would otherwise move to looking for affordable housing. Provision of affordable housing is a critical step towards a better economy in a country. However, the project comes at a cost. Such project could discourage development in other sectors of the economy and burden the low-income earners with high rates of taxation. Increased taxation also encourages tax avoidance and tax evasion. Therefore, an increase in taxation to carter for the expenditure incurred in providing affordable housing options will have negative effects on the economy in general. Alternatively, the government can obtain the needed resources through borrowing from other countries or international corporations such as the World Bank.

Although this may seem a plausible option, putting the country in debt would have far-reaching consequences for the country’s future. The government may not achieve its goals to provide cheap housing for low-income earners. Private investors in the real estate industry will be at the receiving end. The existing investors are bound to receive fewer customers. Most of the customers in the real estate industry are low-income earners who income does not allow them to afford the construction or purchase of personal houses. Their little pay forces them to rent from the investors. Providing housing options for the population will reduce the number of customers available for the investors. The benefits of affordable housing are enjoyed by the individual citizen, to corporate firms and the economy at large.

Low-income earners stand to benefit from such projects through the provision of stable housing which influences other areas such health, education, and lifestyle. They also stand to gain from the employment provided by the project. Corporate firms involved in the construction industry also benefit from contacts from the government. The benefits to the economy are realized from the increased investment made by individuals who will be able to save more of their income because of affordable housing. Rethinking federal housing policy: How to make housing plentiful and affordable. Aei Pr, 2008: 193-209 Krieger, James, and Donna L. Higgins. "Housing and health: time again for public health action. " American journal of public health 92. L. Rev. Rebecca C. and Keith W. "Why Are Affordable Housing Important?".