Pethokoukis: The housing crisis is a supply problem, not a private equity problem

Summary

James Pethokoukis discusses proposed defense and housing policies, questioning their legal and fiscal sustainability. He argues a 50% Pentagon budget increase would be hard to fund because tariffs won't cover costs and could be struck down by the Supreme Court. On housing, he says the crisis is a supply problem driven by state and local zoning, not private equity, and that political attacks on private equity are not supported by data.

• President proposes 50% increase in defense spending by 2027.
• Pethokoukis questions fiscal sustainability and congressional appetite.
• Tariffs are unlikely to fund the increase; Supreme Court may strike them down.
• Proposed limits on defense CEO pay, dividends, buybacks, and capital raising may conflict with attracting startups.
• US housing crisis is primarily a supply problem, not a private equity problem.
• Pethokoukis says data does not show PE ownership causes regional price increases.
• He argues the real solution is state and local zoning and land-use reform.
• Political pressure on private equity is easier than zoning reform.