Is it the government's job to fix the economy?

iVillage Member
Registered: 07-11-2006
Is it the government's job to fix the economy?
628
Mon, 09-12-2011 - 9:21am

Do you think this controversy will play a role in the upcoming election?

WASHINGTON (AP) — The economy needs to be fixed. On this, Democrats and Republicans agree. They part ways over how to do it and, specifically, what role the federal government should play.

"Ultimately," President Barack Obama tells Congress, "our recovery will be driven not by Washington, but by our businesses and our workers. But we can help." His argument that government has a responsibility to do so probably doesn't sit well with an America that's down on Washington.

Texas Gov. Rick Perry, former Massachusetts Gov. Mitt Romney and other Republicans competing for his job take a different tack as they court a tea party-infused GOP electorate: The economy will thrive, they say, if Washington simply gets out of the way. As Perry puts it: "Smaller government, less spending, fewer regulations.At the heart of the 2012 presidential race is an issue as old as the country itself."

Is it the federal government's responsibility to address what ails the nation, in this case the economy? And if so, to what degree? What is the right balance?

More:

http://news.yahoo.com/analysis-governments-role-fix-economy-072531745.html

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iVillage Member
Registered: 09-30-2011

it was the CRA that was the impetus of subprime lending and was the power behind forcing banks to make those loans and devise methods to make them less toxic and even profitable.

iVillage Member
Registered: 03-02-2009
nisupulla wrote:

An

"Resist, we much. We must, and we much. About that, be committed."

iVillage Member
Registered: 07-11-2006

iVillage Member
Registered: 07-11-2006

MYTH: Congressional Democrats, led by Barney Frank, opposed strengthening oversight over Fannie and Freddie

* In 2005, Frank, then the ranking Democrat on the House Financial Services Committee, worked with committee chairman Rep. Michael Oxley (R-OH) on the Federal Housing Finance Reform Act of 2005, which would have established the Federal Housing Finance Agency (FHFA) to replace the Office of Federal Housing Enterprise Oversight (OFHEO) as overseer of the activities of Fannie Mae and Freddie Mac. After voting for the bill in committee, Frank voted against final passage of the bill on the House floor, stating that he was doing so because an amendment to the bill on the House floor imposed restrictions on the kinds of nonprofit organizations that could receive funding under the bill.

* In early 2007, as chairman of the House Financial Services Committee, Frank sponsored H.R. 1427, a bill to create the FHFA, granting that agency “general supervisory and regulatory authority over” Fannie Mae and Freddie Mac, and directing it to reform the companies’ business practices and regulate their exposure to credit and market risk.

iVillage Member
Registered: 07-11-2006

If you think that shielding the industry from loan regulation is a concern, you'll probably have to start directing some of your animosity toward Phil Gramm

While still in the Senate, Gramm shielded derivatives from financial regulatory oversight,

iVillage Member
Registered: 09-30-2011
iVillage Member
Registered: 09-30-2011

The truth about Barney...

iVillage Member
Registered: 07-11-2006

lizzie_b said:

iVillage Member
Registered: 07-11-2006

A lot of people have an agenda when assigning blame for the collapse!

Friedman draws on a chapter written by Peter Wallison, an economically literate lawyer at the American Enterprise Institute and an expert on financial regulation.

iVillage Member
Registered: 07-11-2006

The truth is, however, the Gramm-Leach-Bliley Act had little if anything to do with the current crisis. In fact, economists on both sides of the political spectrum have suggested that the act has probably made the crisis less severe than it might otherwise have been.

I concede that the objective source, factcheck.org, did in fact make this statement. As arrogant as it might make me seem, I can't for the life of me figure out why that statement is on their website. Nearly all non-Conservative sources that I've seen disagrees with factcheck.org on this issue.

I am curious as to how this quote will fair on their website over time.

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