This doesn't cure the underlaying problem. It fuels the problem.
Ro Khanna had a rough morning on Squawk Box.
When Joe Kernen asked him how he would make “succeeding in America easier,” Khanna pitched his idea for expanding zero-down, low-interest mortgages to everyone.
It didn’t go well.
CNBC’s Becky Quick immediately started poking holes in the premise.
KHANNA: “Here’s one proposal you may actually agree with. For our veterans, we give them zero down payment and low interest loans.”
“I say if you work seven years, you got to work, you get zero down payment and low interest loans for your first home. And we make home buying possible for people by 35…”
QUICK: “People who aren’t veterans?”
KHANNA: “People who aren’t veterans. Expand it, to expand the program. But you got to work for seven years. Here’s another idea. I have…”
QUICK: “But…zero percent loans, I mean, that’s a…if interest rates rise beyond where they are right now, you are talking about a huge program.”
“I get it for people who have served their country, I absolutely think that they should get those things. Those of us who haven’t, maybe not.”
Quick had gotten to the root of the issue. Democrats love to say things that sound good in theory, but don't work in practice.
Simply expanding programs without actually thinking about the cost to taxpayers is not a “win.”
Quick’s message was that Veterans who have served their country absolutely deserve these benefits, but expanding them to everyone is not really feasible.