Central planning destroying economy

  • Follow Letters

We have heard a lot about bubbles in the past couple of years -- the housing bubble, the stimulus bubble, the auto/clunker bubble, the student loan bubble, the tuition bubble, etc.

The federal government was responsible for all of these. Congress blames greedy capitalists, but if the gold supply at Fort Knox is left unsecured and the fact is publicized, the bad decision is primarily at fault, and the greedy folks who take the gold are just opportunists doing what comes naturally.

The Community Reinvestment Act passed in 1977. Every president since then has used it to increase the percentage of home ownership, then made it a campaign statement that they were helping Americans to achieve the American dream.

The problem was that any loan that was denied was denied because of "racism." Banks were threatened with federal lawsuits under the Civil Rights Act. The banks complied and got the bad loans off their balance sheets as quickly as possible -- consolidated debt obligations sold to taxpayers (Fannie & Freddie).

The "first-time home buyer" program hoped to reduce the glut of foreclosed homes, but most buyers wanted new homes in better neighborhoods.

Congress passed the Troubled Assets Relief Program and the stimulus plan. This rewarded political supporters and banks that "lost" money. Local "shovel-ready projects" were funded all at once to stimulate the economy. Work scheduled for years was completed in months. Hundreds of jobs were created at Savannah River Site for expedited cleanup. That bubble has burst.

The "cash for clunkers" program got inefficient vehicles off the roads while stimulating the automobile industry. Since American taxpayers are part-owners with unions of automobile manufacturers such as General Motors, this sounded like a good idea.

Alternative energy companies -- wind, solar, wave, geothermal -- were heavily subsidized by taxpayers, while carbon-based energy was threatened with carbon taxes, moratoriums on drilling and stagnation in the permitting process. Our national security is at risk because our wealth has been and is being transferred to our enemies. The Environmental Protection Agency has deemed humans as polluters since the breath that we exhale is carbon dioxide.

Subsidies to financial institutions selling student loans were reduced, and the federal government took over the student loan business. This is like the "single-payer" system favored by Democrats under Obamacare. Drive out private insurers and nationalize Medicare for everyone.

Lotteries have created bubbles by "free" tuition increasing demand while supply grew more slowly. Colleges increased tuition by as much as 200 percent or more of the inflation tax, and competition from other lotteries reduced the amounts available for scholarships. Only 56 percent of graduates found jobs vs. 90 percent a decade before.

The default rate on student loans -- particularly with for-profit online universities and loans needed to pay the increased tuition -- will put taxpayers deeper in debt.

Welcome to the centrally-planned and centrally-controlled economy! A Constitution and a free-market economy made America great. Central planning is destroying it!

Comments (5) Add comment
ADVISORY: Users are solely responsible for opinions they post here and for following agreed-upon rules of civility. Posts and comments do not reflect the views of this site. Posts and comments are automatically checked for inappropriate language, but readers might find some comments offensive or inaccurate. If you believe a comment violates our rules, click the "Flag as offensive" link below the comment.
willie7
1047
Points
willie7 06/17/11 - 10:40 pm
0
0
A Limbaugh listener and
Unpublished

A Limbaugh listener and worshiper!!!!

Jon Lester
2480
Points
Jon Lester 06/18/11 - 12:58 am
0
0
Tell us the truth: do you
Unpublished

Tell us the truth: do you think "redlining" should return as a banking practice?

copperhead
1035
Points
copperhead 06/18/11 - 03:51 am
0
0
Google cloward-piven/obama,if

Google cloward-piven/obama,if you are more intelligent than a rock,you will see this is by design.

southernguy08
532
Points
southernguy08 06/18/11 - 05:58 am
0
0
The government (blanks) up
Unpublished

The government (blanks) up everything it touches. What's new about this, Chuck? And still, there are millions who believe government is the solution to our healthcare problems in this country.

dichotomy
37487
Points
dichotomy 06/18/11 - 07:15 am
0
0
And now the politburo has

And now the politburo has decided that it can tell a company that it cannot build a manufacturing facility in a certain state. The communists have become the capitalist and we have become the central government controlled communists. Boeing should immediately move ALL of it's operations to SC and tell the NLRB to stick it in their ear. Our federal government is out of control. It has assumed powers that it does not and should not have and it is using those powers to pick winners and losers. Unfortunately is seems to want to use our tax dollars to promote the losers and punish the winners. And our economy is showing us the results of those policies.

hounddog
0
Points
hounddog 06/18/11 - 07:56 am
0
0
Mr. Tatum, Well said. The
Unpublished

Mr. Tatum, Well said.
The community organizer is in over his head. Being a good community organizer does not qualify one to be president. But then if you look at Chicago he was not even a good community organizer.

CorporalGripweed
0
Points
CorporalGripweed 06/18/11 - 08:30 am
0
0
Right on all counts Mr.

Right on all counts Mr. Tatum. All we can hope for is that enough independents and intellectually honest Dems, will recant next year and stop the madness that is the Obama administration. Mickey Mouse would make a better President than this clown.

Haki
31
Points
Haki 06/18/11 - 06:23 pm
0
0
The only unfortunate thing is

The only unfortunate thing is I have to observes this bitterness another 5 more years.

Back to Top

Search Augusta jobs