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Facts Show Socialism Caused the Fiscal Meltdown

For months now, the liberal leaders in the press have blamed Wall Street, the housing industry and capitalism for the financial crisis that has thrown the United States into a deepening recession.

The facts show, however, that it is big government socialism that is really to blame.

In 1977 the Jimmy Carter administration passed the Community Redevelopment Act (CRA) that began to push the housing industry to give low-cost home loans to low-income people, especially minorities.

Then, in the early 1990s, the Clinton administration created new rules for the housing industry through the CRA that relaxed the standards even further, not only for low-income people but for other potential homeowners. Also in the 1990s, the Clinton administration forced the government-created mortgage lenders Fannie Mae and Freddie Mac to relax their standards as well.

Contributing to this housing regulation debacle were finance laws in many states that allow homeowners to walk away from their homes without penalty, tax laws that only let homeowners deduct just their mortgage interest and not their consumer loan interest for cars and other physical necessities, and government banking policies that allow banks to hold only a minimal amount of capital to back up their mortgage risks.

All this big government socialism in the housing and banking industry was compounded by socialist laws that prevent oil companies from drilling offshore and in Alaska (thus increasing the price of gas), socialist laws against nuclear power plants, high taxes on American businesses and manufacturers, socialist regulations on the U.S. auto industry, and socialist leaders in America’s labor unions who force workers, employers and the government to enact even more socialist policies throughout society.

And, all this big government socialism can be traced to those in the government who have trashed the Constitution and kept giving the federal government more and more power, despite the clear intent of the original founders.

Only by reducing this big government socialism, slashing government spending and drastically reducing taxes will the U.S. economy fully recover from this wasteful mismanagement of the nation’s resources, including its people.

– Sources: Various.

 

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4000+ Faith Based Articles and Movie Reviews – Will you Support Us?

Our small team works tirelessly to provide resources to protect families from harmful media, reviewing 415 movies/shows and writing 3,626 uplifting articles this year. We believe that the gospel can transform entertainment. That’s why we emphasize positive and faith-filled articles and entertainment news, and release hundreds of Christian movie reviews to the public, for free. No paywalls, just trusted, biblically sound content to bless you and your family. Online, Movieguide is the closest thing to a biblical entertainment expert at your fingertips. As a reader-funded operation, we welcome any and all contributions – so if you can, please give something. It won’t take more than 52 seconds (we timed it for you). Thank you.