These decisions were made by people we elected, so the pain we are going through is self-inflicted. The first step on the road to recovery is to own up to our mistakes. Victor Davis Hanson has a good article on the agitated state of those who are mired in a misery of their own making but still refuse to own up.
The problem as I see it is that government has protected us from the consequences of our actions. Put more specifically, those areas of public and private life that are shielded from the results of irresponsible behavior become chaotic, dysfunctional, bankrupt.
Imagine if you were shielded from the consequences of your actions in your own personal life...
You could cuss out the boss and beat up that annoying coworker in the parking lot and drive home satisfied in a car you decided to stop making payments on. Drink till you fall down, buy a continuous stream of electronic goodies, to hell with the household budget. No hangovers, kick the bills down the road... What a life!
The real world doesn't work that way, and we know it. Yet we allowed silver-tongued government orators to sprinkle magic pixie dust on everything and suspend disbelief.
"Predatory Lending" and Other Government-Sponsored Ideas
Have you heard that public service radio spot about avoiding predatory lenders? It encourages the blissfully ignorant to ask questions before they sign those mortgage documents.
Am I the only one who finds the idea of "predatory lenders" absurd? Think about it. If you suddenly found yourself flush with $10 million after hitting the lotto and decided you wanted to make more money, would you do so by "predatory lending?" Would you accost poor people on the street, "Here, take this cash you can't pay back!" Of course you wouldn't. That would be a quick road to losing your newfound fortune.
End Government Backing of All Mortgages
Now, what if the federal government agreed to step in and assume responsibility for the loans you write, relieving you of all responsibility when the borrower defaults? Then you'd probably hand the loans out like candy and get fat on the up front fees and interest you collect before the crash. That is how the mortgage crisis happened. The federal government, through Fannie and Freddie, shielded the lenders from the consequences of their shoddy lending practices. The federal government now holds around 90% of all mortgages: The good, the bad and the ugly, which means we're all on the hook for the irresponsibility of the government and our fellow citizens.
End Government Insurance of Wall Street
The Wall Street crash and subsequent raid on the US Treasury by Dirty Hank Paulson's band of pirates is a similar tale. The DC-NY Axis of Evil plays a game of "heads Wall Street wins, tails taxpayers lose," encouraging wild speculation binges. We shield big banking from the consequences of its actions and then wonder why the bankster bandits rip us off to pay their gambling debts. If they had to worry about losing the house, or Guido busting their kneecaps, they would act responsibly.
Stop Rewarding Bad Behavior with Government Cash
Individual citizens who have no shame can cash in as well. Swill sucrose-laden drinks, eat like a hog until you're too fat to fit through your front door, and you can collect disability, making a mockery of the system and tarring with the same shameful brush those who legitimately receive benefits. Take drugs and drop out of school and you are eligible for government housing, food stamps and other taxpayer-funded assistance. Crank out kids you can't afford and Uncle Sam will step in, shake down the taxpayers and reward you for your copious breeding habits. Serial impregnators love that one. They can knock her up and leave, knowing we suckers will pick up the tab.
It's time we faced up to the consequences of our actions, on a governmental as well as a personal level.
