In the midst of his re-election campaign, Barack Obama has resorted to telling bold-faced lies to the American people. Namely, he has characterized the economic policies of George W. Bush as “failures” in nearly every speech he has recently made. But a quick look at the facts indicates that Bush’s economic policies weren’t “failures”, but were instead quite successful…and that those policies certainly did not create the current financial mess.
In order to analyze the success (or failure) of Bush’s economic policies, we must first take stock of the environment with which he was working. In 2001, Bush was not only dealing with the burst of the dot com bubble, but also was dealing with the after-effects of the most heinous attack on American soil in our history. Life in America had virtually grinded to a halt—and understandably so—on September 11, 2001…the day that the entire world changed. And our economic habits were a part of that re-assessment of our surroundings, just as everything else was. So there’s no doubt, Bush was dealing with an economy that was dangling on the precipice to begin with.
Bush’s primary maneuver to answer this most gargantuan of economic challenges was the (now much-vilified) “Bush Tax Cuts”. And while it’s difficult to trace an upturn or downturn in an economy to any one factor, the fact remains that nearly six million jobs were created between 2001 and 2008 (or perhaps even more jobs were created, depending upon who’s estimates you believe. Stats, BTW, come from the National Bureau of Labor Statistics, as re-printed in the Tampa Bay Times: http://www.politifact.com/truth-o-meter/statements/2011/may/11/john-boehner/john-boehner-says-bush-tax-cuts-created-8-million-/ ). Furthermore, tax revenue increased after the tax cuts (just as it normally does when taxes are cut…that’s the pesky little economic fact that Liberals don’t want you to know!) Between 2003 & 2007, tax filers grew by 9.6%, and taxable income grew by 44% (Source: http://www.heritage.org/research/reports/2011/09/setting-the-tax-record-straight-clinton-hikes-slowed-growth-bush-cuts-promoted-recovery )
Critics often say that many of the jobs created during the Bush years were later “lost” in the 2008 recession. But it doesn’t take away from the fact that these jobs were created in the first place. Economic conditions and environments change over time, and no job is guaranteed to exist 10 or 20 years down the road—no matter what economic or political philosophies shape the environment in which the job was originally created. I’d be willing to bet that if, today, you walked up to an unemployed man who is presently struggling to feed his family and offered him a job—but with the caveat that “I can’t guarantee that the job will still be around ten years from now”, that man would eagerly take the job (and likely give you a heartfelt “Thank You” on top of it). Created jobs don’t suddenly lose their legitimacy simply because they may not survive different and unforeseen economic circumstances down the road. The bottom line is that Bush’s tax cuts were a significant factor in the economic environment of the early 2000’s—and that was an environment in which jobs were created. Seems like the definition of “successful economic policy” to me…
But what about the housing bubble and the ensuing financial crisis…that just had to be all Bush’s fault, didn’t it? After all, it happened during his term, so it must have been his fault, right? Why, you’re probably saying to yourself, if he’d just reigned in Wall Street, none of this icky recession stuff would have ever happened!
You couldn’t be more wrong.
It wasn’t George W. Bush—or even Wall Street for that matter—who caused bad loans to be made or unreasonable risks to be taken by the banking industry. Instead, it was the government itself that injected this undue risk into the system—via the Community Re-Investment Act that was implemented back in the late 1970’s. It was this law, followed by continual pressure from the Federal Government, which forced banks to lend to home “owners” who had heretofore been kept out of the housing market (and kept out of it for good reason).
Prior to this act, most banks had far more strict lending standards. Back in the 1970’s and earlier, it wasn’t out of the ordinary to see banks demand down payments of 20% or even more on a home loan, or to charge interest rates in the double-digits. While lending standards and conditions like these certainly make it more difficult for individuals to purchase homes, they also functioned as a roadblock to keep the riskiest investors out of the marketplace entirely—thereby reducing the risk for large-scale disaster. But government involvement in housing brought with it lower interest rates, lower down payment demands, and insistence on much looser and unreasonable lending standards (including the outlawing of the legitimate lending practice of “redlining”—the act of prohibiting home loans to certain zip codes in which homes are statistically unlikely to retain their value). All of this in an effort to attract the worst possible customers into the marketplace. Since banks were no longer allowed to make good investment decisions, they had to do the next best thing—find a way to sell the risk (which the government had forced them to take on in the first place) to some other sucker…er…”investor”…in order to glean some value out of it and mitigate this risk.
And all of these dominoes started falling long before Bush (or even before his father) ever took office. It wasn’t a lack of Wall Street regulation and banking regulation that caused these problems…it was instead the over-regulation of the housing industry which brought upon this financial disaster.
George W. Bush was far from a perfect President. There are many things that even the most ardent Conservatives and Republicans can find to disagree with him on (His gratuitous spending on education, “No Child Left Behind”, dumping money into AIDS prevention in Africa without getting anything in return, Medicare Part D, and a myriad of other issues). But to look at his economic policies and consider them to be failures is to completely ignore the facts and history of the 2000’s. The Bush Tax Cuts did not destroy jobs, and Bush’s economic policies did not cause the housing crisis. And while we’re on the topic, here’s another Liberal charge that we can debunk: “Charging two wars on our Credit Cards” didn’t play any kind of significant role in creating our massive debt. At the height of our military action—2006—Military spending and educational spending combined were less than 20% of our total budget. Entitlement programs (Social Security, Medicare, and the like) were nearly 2/3 of our overall budget! Blaming our horrendous debt on our wars and military action is like a 350 pound woman saying “this dress makes me look fat”. Honey, it ain’t the dress that makes you look fat…it’s the fat that makes you look fat. It ain’t the wars that have made us broke…it’s the Social Security, Medicare, & Medicade that have made us go broke, and that we’re constantly borrowing money to fund!
So whenever you hear Obama talk about the “failed economic policies” of the last administration, recognize that your President is lying to you. It would be bad enough if Barack Obama were simply an incompetent buffoon who was in over his head—he’d have to be replaced, but you couldn’t really get mad at him for his stupidity. But he’s lying to you on top of simply being incompetent, and the media is backing him up. And lying to the American people—when the facts to the contrary are as obvious as a Hollywood starlet’s boob job—shows not only a severe lack of character, but it calls into question one’s motivations, patriotism, and dedication to American principals as well!
Showing posts with label Community Re-Investment Act. Show all posts
Showing posts with label Community Re-Investment Act. Show all posts
Wednesday, June 20, 2012
Wednesday, December 8, 2010
Why we must declare war on intellectualism
It almost goes without saying that a massive change has occured in the values, beliefs, and behaviors of Americans living today and the values, beliefs, and behaviors of our grandparents and great-grandparents. When one examines this change in our culture (and the mostly negative consequences that arose from the actions generated by this cultural change), it can lead one to the rather daunting questions of "How in the Hell did we allow our nation to get to this point? Where did we wander off the trail?"
There are many potential scapegoats, of course. We could spend post after post laying blame on the media, the Democratic Party, or the entertainment industry (and who knows, perhaps at some point I will spend post after post doing this), but the fact is that none of those entities could have had as much influence over our beliefs and actions as they have unless we had somehow allowed them to do so. But if that is the case, then how on Earth did we allow these entities to co-opt and corrupt us?
One of the key answers to that question might surprise some of you--indeed, it might be something you've never considered or thought about. Indeed, when I mention what it is in the next few lines, it might seem counter-intuitive--or perhaps even flat-out crazy--to you. But if you think about it, and look back at the 20th Century, I think you'll see where I'm coming from.
It is our trust in Intellectualism and Academia that has done untold damage to our society through the 20th century.
To put it in most simple terms, we as a society have abandoned our own knowledge, observations, judgement, understanding of human nature and yes, common sense...and have instead deferred to the pontifications of those who have spent their lives in our Colleges and Universities, but have produced little of actual value. Through the 20th century, we have been told that "the smartest guys in the room" have all the answers, and that those of us who don't have the "Ivy League Seal of Approval" should feel compelled to defer to whatever comes out of the mouths of the Intellectual Elite--no matter how ridiculous those words or ideas might be. Forget that many of the ideas that Intelligensia has backed over the last 100 years or so have been counter-intuitive to any sort of basic understanding of human nature, psychology, or sociology--we have somehow determined that those counter-intuitive ideas must somehow have more value than our own instincts and understanding, simply because these "new" ideas are coming from those who have a particular sheepskin on their wall or certain letters after their name.
In short, we have confused edcuation for intelligence.
What is the difference between education and intelligence? Think back to your childhood--if you're anywhere near my age (mid-thirties...though I'm not above claiming an age of 27 when speaking with a lovely lady), then you likely remember growing up around people in your childhood who always seemed to have the right answer or solution, regardless of what problem or situation arose. It might have been a parent, grandparent, neighbor, uncle, aunt, pastor...chances are, there was someone around early in your life (and perhaps, many someones) who had the ability to "figure out" the right solution or answer to whatever life handed them. Now, think a bit further--how many of those people were college educated? Of that group, how many had a Master's Degree? How many had a Doctorate?
For most of us, maybe a few of those influences had a college education. Perhaps one or two had a master's degree. And beyond your pediatrician or dentist, you probably didn't know anybody who had a doctorate. Speaking for myself, I grew up in an area where very few adults had anything beyond a High School education (and many didn't even have that)--but yet many of the adults I knew back then understood how do deal with people, understood how to teach them when necessary, understood when you should give people a helping hand (and perhaps more importantly, the knew when you shouldn't give a helping hand). They understood how to run a business, how to manage risk, invest, and grow money, and how to protect the interests of themselves and their families. All without the "Ivy League Seal of Approval".
These uneducated adults understood that you cannot prepare a child for adulthood without instilling discipline in him (but the intellectuals of the same era would argue that you have to be your child's best friend and not take an authoritative role in their lives). These uneducated adults knew that putting money away and spending responsibly would put you in good stead later in life (as the intellectuals claimed that one must spend, spend, spend with little regard for fiscal responsibility in order to keep the economy moving). These uneducated adults taught us that it is not acceptable to steal, lie, or kill in life (but the intellectuals of that era told us that if someone is economically, socially, or racially disadvantaged, then such actions must be understood, not criticized)
In short, most of the "uneducated" adults I grew up around had more intelligence and better judgement than many of the allegedly "educated" people I've met in the ensuing years since I left my hometown.
But how can this be? Shouldn't those with hours upon hours, and years upon years of education have the ability to make better judgements or come up with better answers than those without such education? One would think so...but there's one key element missing in mondern academia. The missing element is the connection of that education (and the theory it entails) to the realities of the world we live in. So much of what passes for modern education isn't proven, but is instead theorectical in nature. It is not meant to relate to how humans really behave in live, but instead is meant to relate to how those within the cocoon of intelligensia feel that humans should live.
Where the uneducated "rubes" that I grew up with made judgements, analysis, and decsions within the realm of reality (if I do X, then I know Y will happen next), much of intelligensia make their judgements, analysis, and decisions based outside the realm of the world that currently exists ("If we understand the terrorists, perhaps we could connect with them and make everybody more safe!"...despite the fact that World History would indicate this has never happened with this group of people).
This is not to say that education--in and of itself--is a bad thing. Heck, I have a bachelor's degree myself. However, it is to say that education is not the be all and end all of intelligence. The education one receives must be based in the practical, not the theoretical, in order to be of any value. Think back to LBJ's Great Society--a series of programs that the Intellectuals told us would level the playing field for poor Americans and give them opportunities that they were allegedly being deprived. The result? Cities that are in a shape as bad--or in many cases, worse--than they were before the meddling of LBJ and the intellectuals in his ear, not to mention a creation of a Welfare Class that burdens us to this day. The intellectuals never saw this coming--but the "good ol' boys" would have told you that giving money to people without having them work for it would do nothing more than encourage those people to remain unproductive and lazy (and indeed, they have).
It's high time that we start trusting in our own judgement again. The 20th Century has proven that the judgement of the Intellectuals is no more superior or less flawed than our own. Each of us has the power to analyze a situation or a problem, look at the facts avaliable, and use our own experience and knowledge of human beings to take proper action--we do not need an "educated" class of people to make those decisions for us or to try to influence our decisions. An education should be used to supplement what you already know and understand about the world, not to replace it.
If an intellectual tells you something that just doesn't make sense in your gut--then trust your gut, chances are that it has a better track record than the intellectual. When an intellectual tries to feed you come cockamamie theory that doesn't pass the "smell test" of reality (you know, like telling you we can provide health insurance to all Americans without raising the cost or comprimising the availability of that insurance), reject them! Their judgement-steeped as it is in the trappings of intelligensia--is no better than yours.
Remember, the "intellectuals" led us to failed ideas such as Keynsian Economics, The Great Society, Social Security, and The Community Re-Investment Act (and it's bastard offspring, Fannie Mae & Freddie Mac), all of which have contributed to the financial problems that we experience today. With that type of track record, perhaps it's high time that we sat Academia in the corner, and put the Dunce Cap upon their collective head.
There are many potential scapegoats, of course. We could spend post after post laying blame on the media, the Democratic Party, or the entertainment industry (and who knows, perhaps at some point I will spend post after post doing this), but the fact is that none of those entities could have had as much influence over our beliefs and actions as they have unless we had somehow allowed them to do so. But if that is the case, then how on Earth did we allow these entities to co-opt and corrupt us?
One of the key answers to that question might surprise some of you--indeed, it might be something you've never considered or thought about. Indeed, when I mention what it is in the next few lines, it might seem counter-intuitive--or perhaps even flat-out crazy--to you. But if you think about it, and look back at the 20th Century, I think you'll see where I'm coming from.
It is our trust in Intellectualism and Academia that has done untold damage to our society through the 20th century.
To put it in most simple terms, we as a society have abandoned our own knowledge, observations, judgement, understanding of human nature and yes, common sense...and have instead deferred to the pontifications of those who have spent their lives in our Colleges and Universities, but have produced little of actual value. Through the 20th century, we have been told that "the smartest guys in the room" have all the answers, and that those of us who don't have the "Ivy League Seal of Approval" should feel compelled to defer to whatever comes out of the mouths of the Intellectual Elite--no matter how ridiculous those words or ideas might be. Forget that many of the ideas that Intelligensia has backed over the last 100 years or so have been counter-intuitive to any sort of basic understanding of human nature, psychology, or sociology--we have somehow determined that those counter-intuitive ideas must somehow have more value than our own instincts and understanding, simply because these "new" ideas are coming from those who have a particular sheepskin on their wall or certain letters after their name.
In short, we have confused edcuation for intelligence.
What is the difference between education and intelligence? Think back to your childhood--if you're anywhere near my age (mid-thirties...though I'm not above claiming an age of 27 when speaking with a lovely lady), then you likely remember growing up around people in your childhood who always seemed to have the right answer or solution, regardless of what problem or situation arose. It might have been a parent, grandparent, neighbor, uncle, aunt, pastor...chances are, there was someone around early in your life (and perhaps, many someones) who had the ability to "figure out" the right solution or answer to whatever life handed them. Now, think a bit further--how many of those people were college educated? Of that group, how many had a Master's Degree? How many had a Doctorate?
For most of us, maybe a few of those influences had a college education. Perhaps one or two had a master's degree. And beyond your pediatrician or dentist, you probably didn't know anybody who had a doctorate. Speaking for myself, I grew up in an area where very few adults had anything beyond a High School education (and many didn't even have that)--but yet many of the adults I knew back then understood how do deal with people, understood how to teach them when necessary, understood when you should give people a helping hand (and perhaps more importantly, the knew when you shouldn't give a helping hand). They understood how to run a business, how to manage risk, invest, and grow money, and how to protect the interests of themselves and their families. All without the "Ivy League Seal of Approval".
These uneducated adults understood that you cannot prepare a child for adulthood without instilling discipline in him (but the intellectuals of the same era would argue that you have to be your child's best friend and not take an authoritative role in their lives). These uneducated adults knew that putting money away and spending responsibly would put you in good stead later in life (as the intellectuals claimed that one must spend, spend, spend with little regard for fiscal responsibility in order to keep the economy moving). These uneducated adults taught us that it is not acceptable to steal, lie, or kill in life (but the intellectuals of that era told us that if someone is economically, socially, or racially disadvantaged, then such actions must be understood, not criticized)
In short, most of the "uneducated" adults I grew up around had more intelligence and better judgement than many of the allegedly "educated" people I've met in the ensuing years since I left my hometown.
But how can this be? Shouldn't those with hours upon hours, and years upon years of education have the ability to make better judgements or come up with better answers than those without such education? One would think so...but there's one key element missing in mondern academia. The missing element is the connection of that education (and the theory it entails) to the realities of the world we live in. So much of what passes for modern education isn't proven, but is instead theorectical in nature. It is not meant to relate to how humans really behave in live, but instead is meant to relate to how those within the cocoon of intelligensia feel that humans should live.
Where the uneducated "rubes" that I grew up with made judgements, analysis, and decsions within the realm of reality (if I do X, then I know Y will happen next), much of intelligensia make their judgements, analysis, and decisions based outside the realm of the world that currently exists ("If we understand the terrorists, perhaps we could connect with them and make everybody more safe!"...despite the fact that World History would indicate this has never happened with this group of people).
This is not to say that education--in and of itself--is a bad thing. Heck, I have a bachelor's degree myself. However, it is to say that education is not the be all and end all of intelligence. The education one receives must be based in the practical, not the theoretical, in order to be of any value. Think back to LBJ's Great Society--a series of programs that the Intellectuals told us would level the playing field for poor Americans and give them opportunities that they were allegedly being deprived. The result? Cities that are in a shape as bad--or in many cases, worse--than they were before the meddling of LBJ and the intellectuals in his ear, not to mention a creation of a Welfare Class that burdens us to this day. The intellectuals never saw this coming--but the "good ol' boys" would have told you that giving money to people without having them work for it would do nothing more than encourage those people to remain unproductive and lazy (and indeed, they have).
It's high time that we start trusting in our own judgement again. The 20th Century has proven that the judgement of the Intellectuals is no more superior or less flawed than our own. Each of us has the power to analyze a situation or a problem, look at the facts avaliable, and use our own experience and knowledge of human beings to take proper action--we do not need an "educated" class of people to make those decisions for us or to try to influence our decisions. An education should be used to supplement what you already know and understand about the world, not to replace it.
If an intellectual tells you something that just doesn't make sense in your gut--then trust your gut, chances are that it has a better track record than the intellectual. When an intellectual tries to feed you come cockamamie theory that doesn't pass the "smell test" of reality (you know, like telling you we can provide health insurance to all Americans without raising the cost or comprimising the availability of that insurance), reject them! Their judgement-steeped as it is in the trappings of intelligensia--is no better than yours.
Remember, the "intellectuals" led us to failed ideas such as Keynsian Economics, The Great Society, Social Security, and The Community Re-Investment Act (and it's bastard offspring, Fannie Mae & Freddie Mac), all of which have contributed to the financial problems that we experience today. With that type of track record, perhaps it's high time that we sat Academia in the corner, and put the Dunce Cap upon their collective head.
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