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Housing Fix

Posted by on Feb 21, 2009 in administration, capitalism, collectivism, housing fix, Obama, personal responsibility | 0 comments

What are we to make of the pending fix the Administration has proposed for the foreclosure mess? I think the first thing to consider is that President Obama has indeed put forth a proposal he believes will keep Americans in their homes. That effort should be applauded, despite any criticisms of the actual plan itself.

Let’s consider the merits of the plan. This is where it becomes more difficult to be complimentary. For the proposed fix does seem to put in place a subjective system of determining who should be bailed out of their mortgage. How does any set of criteria for identifying those eligible for a housing bailout avoid accusation of being arbitrary? The devil is, of course, in the details.

Between the economic stimulus law provisions allowing a Bankruptcy Judge to “pencil” in changes to one’s mortgage, and the proposed housing fix, personal responsibility becomes a casualty.

The destruction of personal accountability is quite serious, if it cannot be restored. The message from the Administration to the public is that “they” know better than you do in managing your financial affairs. The message to the business community is that the American landscape is no longer subject to free market principles. Capitalism is at least temporarily, they say, finished.

The demise of private ownership to the means of production presents a terrible prospect for personal freedoms, once this recession passes. When the housing market and our stock markets do recover, which they undoubtedly will, how quickly will the current reforms be shelved? I doubt it will be nearly as quickly as the reforms or fixes that have been put in place.

What other personal freedoms will be sacrificed in favor of collectivism under the guise of saving the economy? Let us hope the answer is none. Let us also hope that when matters improve, the prospect of private ownership and the puritanical work ethic can be restored.

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Economic Stimulus

Posted by on Feb 18, 2009 in economic stimulus, greed, personal responsibility | 0 comments

$787,000,000,000.00. It’s a number that quite possibly cannot be fathomed. Despite this, it is all we seem to have standing between economic recovery and a deepening recession.

Setting aside the obvious question of whether the stimulus will work, what does the new spending law say about the prospects of private ownership? If greed and excess contributed to the current economic state, are we setting a precedent that the government will bail us out in all such occasions? Do Americans still feel any personal responsibility for accepting mortgages on homes they couldn’t afford? Did we ever share such a sense of responsibility?

Back to the “will it work” question. I am not aware of a recession that was resolved by spending without tax cuts. I am hopeful we can avoid an onslaught of inflation created by spending money printed on paper alone.

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