Freedom and Responsibility
On his WMAL 630 radio show this evening, host Mark Levin pointed out:
“The right and left are becoming more agressive (sic) in regulating behavior, especially in the economic sectors. The beauty of America is that it allows freedom. Freedom means responsibility of the individual to live and perform and succeed as much as they can. The problem with liberals is that they are power-hungry, and power trumps liberty in their eyes.”
Levin then went on to read excerpts from an op-ed by former Senator, and 1972 presidential candidate George McGovern (D), which appeared in today’s Wall Street Journal, including:
“Under the guise of protecting us from ourselves, the right and the left are becoming ever more aggressive in regulating behavior. Much paternalist scrutiny has recently centered on personal economics, including calls to regulate subprime mortgages.
“With liberalized credit rules, many people with limited income could access a mortgage and choose, for the first time, if they wanted to own a home. And most of those who chose to do so are hanging on to their mortgages. According to the national delinquency survey released yesterday, the vast majority of subprime, adjustable-rate mortgages are in good condition,their holders neither delinquent nor in default.”
McGovern also addressed so-called payday loans in his op-ed:
“Economic paternalism takes its newest form with the campaign against short-term small loans, commonly known as "payday lending” . . . With payday lending, people in need of immediate money can borrow against their future paychecks, allowing emergency purchases or bill payments they could not otherwise make . . . Anguished at the fact that payday lending isn't perfect, some people would outlaw the service entirely, or cap fees at such low levels that no lender will provide the service. Anyone who's familiar with the law of unintended consequences should be able to guess what happens next.”
Levin’s comments and McGovern’s op-ed came to mind while reading in today’s Washington Times that Virginia Gov. Tim Kaine (D) “indicated that he would sign the legislation.” According to the Times, “Virginians took out more than 3.5 million payday loans” last year.
As economist C. Newmark writes at Newmark's Door:
"Why do we think we are helping adult consumers by taking away their options? We don't take away cars because we don't like some people driving. We allow state lotteries despite knowing some people are betting their grocery money . . . We should do our best to educate them, but without diminishing choice for everyone."
The legislation was HB12 sponsored by Del. Glenn Oder (R); note, however, that the vote tally in the Times report differs from the General Assembly’s information system tally.