Posted on May 29, 2016
Congress is targeting military housing stipends, and it could cost troops thousands
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If you say the cap is $2000 people will spend $2000. To make these changes will save money for one year. After that everyone will just manipulate the system or get their own places. By doing this supply will go down and cost will go up, thus driving prices up. We need a PhD economist to break it down, but this formula(of adjusting to cost) sounds good by common sense, but doesn't adjust for human nature.
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Lt Col (Join to see)
We did this exact thing before BAH. It was call BAQ and VHA. You had to submit your rental agreement to finance. What you described is exactly what happened. Plus the added bureaucracy that had to be put in place increased the cost on the manpower side as well. That was the original reasoning for going towards BAH.
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