Don't get it

I don't quite get it now but maybe I'll learn something. I'm talking about the Republican contribution to the stimulus package:

The Senate voted Wednesday night to give a tax break of up to $15,000 to homebuyers in hopes of revitalizing the housing industry, a victory for Republicans eager to leave their mark on a mammoth economic stimulus bill at the heart of President Barack Obama's recovery plan.

Gosh why didn't we think of this before? Well we kind of did. Creative (no or low money down) financing caused the bubble in housing prices. The bubble popped and there is evidence the market is working as it should - housing prices have fallen and pending sales of existing homes increased in December. Aggressive monetary policy has lowered mortgage interest rates. Why should fiscal policy - tax credit to homebuyers - be used to further distort the housing market?

I am not impressed with programs that imply that the macro economy can be managed via surgically precise strikes. Beyond the doubts of efficacy they tend to be inequitable. Why should new homebuyers (homesellers) get subsidized? Nothing is being produced, rather there is merely an exchange of property. Why not subsidize the renter (landlord)? Why not subsidize more comfortable digs for the homeless?

I don't have a doubt that a $15,000 tax credit will stimulate activity in the housing market as long as it is extended. If taxpayers are forced to subsidize cattle production we'll all eat more hamburgers.