The debate seems to rest on whether this will cost us too much in the long run. I did read a good response that talks about the ‘stimulus’ we get every time a home is purchased. With the purchase come the additional needs of moving, furnishing, fixing up, etc. which in turn puts more into the economy over time. The good thing about the tax credit is, (if used properly) it will help take care of these things without putting additional strain on the buyers budget.

Also being in the Phoenix area, nothing seems to be more damaging to neighborhoods than empty houses which are targets for all sorts of bad behavior.

As far as I can see, the program at least gets people more active. I have to believe this is better for our economy than stagnation.