Contrary To Rhetoric
Readers of ACTA’s newsletter, The ACTA Watchdog, will know that we like to feature quotes by the noted economist Thomas Sowell, whose “prolific scholarship (melds) history, economic and political science,” according to Wikipedia. Investor’s Business Daily posted Sowell’s latest column at their website in which he discusses the folly of the federal government bailing out homeowners in trouble, including those with mortgage loans up to $720,000. He begins by saying:
“Now that the federal government has decided to bail out homeowners in trouble, with mortgage loans up to $729,000, that raises some questions that ought to be asked but are seldom being asked.
“Since the average American never took out a mortgage loan as big as seven hundred grand — for the very good reason that he could not afford it — why should he be forced as a taxpayer to subsidize someone else who apparently couldn't afford it either but who got in over his head anyway?
“Why should taxpayers who live in apartments, perhaps because they did not feel that they could afford to buy a house, be forced to subsidize other people who could not afford to buy a house but who went ahead and bought one anyway?”
Here are a few more pearls:
- “What is new is the current notion of indulging people who refused to save for a rainy day or to live within their means. In politics, it is called "compassion" — which comes in both the standard liberal version and "compassionate conservatism."
- “The one person toward whom there is no compassion is the taxpayer.”
- “The political meaning of "affordable housing" is housing that is made more affordable by politicians intervening to create government subsidies, rent control or other gimmicks for which politicians can take credit.”
- “Affordable housing produced by market forces provides no benefit to politicians and has no attraction for them.”
- “Study after study, not only here but in other countries, shows that the most affordable housing is where there has been the least government interference with the market — contrary to rhetoric.”
So well said, Mr. Sowell. And thank you, IBD, for publishing Mr. Sowell’s columns.