On Larry Kudlow’s show, Dan Mitchell of the libertarian Cato Institute and Christian Weller of the progressive Center for American Progress go head to head to answer Kudlow’s question about the money spent on the Obama administration’s mortgage-adjustment program: What do we have to show for $75 billion?
The plan to adjust mortgages is a failure: with the economy showing no real sign of improving and unemployment getting worse, thousands of homeowners still cannot afford their newly adjusted mortgages. What’s the statist, progressive answer? More intervention by the government! Mr. Weller and a banker quoted early in the clip advocate forgiving principle and using government power to coerce banks into, essentially, breaking contracts. This, of course, after government helped create the problem by using its coercive powers to push banks into making loans to marginal borrowers and then making it easy by guaranteeing those same bad loans.
In other words, the answer is more cowbell!
Watch the video. You will never see a clearer divide between the free-market and statist paradigms.
And, like Larry, I want my $75 billion back.
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