Less Government, more Responsibility

The current economic crisis was not caused by bad people, rather it was caused by well-meaning people who enacted failed ideas into law.The failed idea in this case was that the government can best help families who are struggling financially by encouraging them to plunge themselves in debt.The entity which enacted the failed policy was Congress, and the entities that implemented congressional policy were HUD, Fannie Mae and Freddie Mac.Fannie and Freddie didn't act out of a desire for profit or out of greed. They acted in compliance with HUD goals.HUD acted in compliance with the will of Congress. While Congress searches far and wide for people to blame, they are diverting attention from the true creators of the crisis - themselves.Some people say that financial markets require more governmental regulation. I would suggest they require less government participation. The financial debacle we are having now was caused by the decision to use debt as a tool of social policy.The problem is that the government entered the mortgage market, driving out free enterprise. HUD sponsored and Fannie-and-Freddie guaranteed loans are half of all mortgage loans, but they are defaulting at three times the rate of private sector loans.Government caused this crisis, not private businesses.The broader lesson to be learned here is that government control of private businesses doesn't work. Do we need more proof than what has happened in Germany and Korea?Within just a few years, West Germany and South Korea were powerhouses of freedom and prosperity.In the same period of time, East Germany and North Korea were examples of repression and poverty.Modern American politicians say "we're smarter, we're better, and we won't let that happen here." Government won't solve your problems