NAHB and Political Money

I heard a story on Marketplace last week about the National Association of Home Builders.

Apparently, they've decided to withholding donating any money to political candidates this year because they believe that Washington has not done enough to take care of the housing crisis.

I applaud their actions while completely disagreeing with their rationale.

Here's hoping every PAC feels the same way and stops donating!

Don't let anyone kid you, PACs donate money in the hopes of influencing policy. Anyone who tells you otherwise is also likely to try and sell you the Brooklyn Bridge. And, if you look at the history of how politicians vote, it's pretty rare to see one vote against the interests of those who have donated large amounts to their campaign.

As far as NAHB's belief that the government has not done enough to help them, I'd be interested in seeing their proposals for what the government should be doing on their behalf.

I believe the government has a role to play in this crisis. I believe they need to make sure that the credit markets stay liquid. I believe it's in everyone's best interests for them to try and help families stay in their homes, so long as they can truly afford them. But I don't see bailing out individual businesses as either desirable or necessary in the current climate.

If the government does what it can on the above two items, if it works to put a floor under the real estate market, the builders, like everyone else in the industry will recover over time.

So, NAHB, please do keep your money, and not only this year! Now if only we can convince some of the other PACs to do the same!