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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, Assistant Research Professor, Executive Editor
Jay Richards, Ph.D., O.P., is an Assistant Research Professor in the School of Business and Economics at The Catholic University of America, Executive Editor of The Stream and a Senior Fellow at the Discovery Institute where he works with the Center on Wealth, Poverty and Morality. In addition to writing many academic articles, books, and popular essays on a wide variety of subjects, he edited the award winning anthology God & Evolution and co-authored The Privileged Planet.  His most recent book is The Human Advantage. Richards has a Ph.D., with honors, in philosophy and theology from Princeton Theological Seminary, an M.Div., a Th.M., and a B.A. with majors in Political Science and Religion. He lives with his family in the Washington DC Metro area.