In 2018, less than 10 percent of Americans were “underwater” on their home mortgages; that is, they owed more than their homes were worth. At the bottom of the Great Recession, about 30 percent of homeowners were underwater. Many of those “underwater” families walked away from their mortgage. Many declined to abandon their mortgages because they feared the consequences on their credit records and wanted to avoid the cost of changing homes. Some continued to make payments simply because they believed defaulting would be immoral. While serving as U.S. Treasury Secretary, Henry Paulson said that anyone who walks away from his or her mortgage is “simply a speculator—and one who is not honoring his obligation.”
a. Make the argument that deliberately walking away from an underwater home mortgage is immoral.
b. Make the argument that walking away is not immoral.