Bipartisan Boondoggle
I am currently taking a class on Christianity and Capitalism at school. We’re looking at the underlying assumptions of economic systems (esp. capitalism) to see how they fit into a Christian worldview. While doing some research I ran across this interesting article by A. M. C. Waterman. He has some interesting stuff to say about our current economic situation and stimulus packages.
Sorting Through Keynesian Rubble
However, I also ran across a bit of interesting history. It turns out it was both parties who led us into this financial mess. Big surprise, huh?
Clinton, Republicans agree to deregulation of US financial system
While I wouldn’t align myself with the source (or agree with them on the whole), some of the quotes and information in the article are pretty interesting. If you read nothing else of it, read the last 2 or 3 paragraphs, remembering that this was written in 1999!
Consider:
“Legislation first adopted to save American capitalism from the consequences of the 1929 Wall Street Crash is being abolished just at the point where the conditions are emerging for an even greater speculative financial collapse.”
or
“A financial deregulation bill was passed in the early 1980s … lifting many restrictions … of savings and loan associations … to the home-loan market … culminating in collapse and the biggest financial bailout … more than $500 billion. The repetition of such events in the much larger banking and securities markets would be beyond the scope of any federal bailout.”
Well, it happened, and we bailed it out. The question remains if we can afford it. It may still well prove ‘beyond the scope’…
