In reaffirming its near 0% interest rate policy for another three years the Federal Reserve averred that this was ­necessary to revive the housing market, which, in turn, was necessary for the economy to revive. House building and the buying and selling of existing homes are meaningful parts of the economy. More important, from the Fed’s perspective a house is the biggest asset for millions of people; therefore, higher values mean owners will be more likely to spend.

This reasoning is arse backwards.

A strong economy—and minimal gov­ernment interference—would rapidly revive the housing market. People who want to buy houses, which includes most of us, buy them when we can ­afford to do so. Only during the Fed-­created bubble were millions of people with insufficient incomes purchasing homes with mortgages that were far beyond their capacity to service.

Let’s hammer this point home: ­Government and Federal Reserve “stimulus” for housing won’t put our economy on a vigorous and sustainable growth trajectory. Other things—sound money, low tax rates, less spending, repealing ObamaCare and Dodd-Frank—will.

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