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Wealth & Poverty Review Government’s Financial Amnesia


Our New Discovery Institute colleague Scott Powell has a Letter to the Editor in today’s Wall Street Journal, responding to Timothy Geithner’s encomium to the Dodd-Frank Act that supposedly fixed our ailing financial system.

The success of new laws and regulations is best measured by how they address and fix the core problems they are designed to solve.
By this simple standard, Dodd-Frank is a failure. The regulatory paperwork for banks has nearly tripled, making the processing of loans more difficult, costly and protracted when the economy can least afford it. Banks are still “too big to fail,” and Fannie Mae and Freddie Mac remain wards of the state, having cost taxpayers some $170 billion and counting. Systemic risk has dramatically increased since 2008 with the transfer and growth of debt from the private to the public sector. Thus, perhaps amnesia is a condition more characteristic of Mr. Geithner and Washington than the people at large.
Scott S. Powell
Discovery Institute
Seattle

Once again, the federal government, in an attempt to fix a problem that it largely created, has made the problem worse.

Jay W. Richards

Senior Fellow at Discovery, Senior Research Fellow at Heritage Foundation
Jay W. Richards, Ph.D., is the William E. Simon Senior Research Fellow at the Heritage Foundation, a Senior Fellow at the Discovery Institute, and the Executive Editor of The Stream. Richards is author or editor of more than a dozen books, including the New York Times bestsellers Infiltrated (2013) and Indivisible (2012); The Human Advantage; Money, Greed, and God, winner of a 2010 Templeton Enterprise Award; The Hobbit Party with Jonathan Witt; and Eat, Fast, Feast. His most recent book, with Douglas Axe and William Briggs, is The Price of Panic: How the Tyranny of Experts Turned a Pandemic Into a Catastrophe.