At any given point in time there are a finite quantity of goods in any economy (housing being a prime example). Give everyone more buying power, and buyers begin to "compete" with each other for this finite supply -- with the result of that competition being soaring prices (the "housing bubble").
What this means should now be self-evident to all. The U.S. mortgage-interest tax deduction not only maximizes overall debt levels by enticing debtors to take on greater debt, but these higher debt levels drive up prices significantly.
Not only does this ultimately make U.S. housing less affordable for all, it is an artificial means to allow borrowers to become buried under debt levels their declining incomes cannot possibly sustain over time. Thus it is also a permanent recipe for an endless series of housing bubbles. One cannot argue with either arithmetic or human nature.
We can come up with a very simple title for the agenda of the U.S. government (and the banking oligopoly) to maximize debt-levels among Americans: debt-slavery. We see identical patterns with U.S. consumer debt and student loan debt. Debt slavery represents the pinnacle of "engineering" in the oligarchs' vision of a