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Government Has Financial Amnesia and Denial, Too

Original Article

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

Scott S. Powell

Senior Fellow, Center on Wealth, Poverty, and Morality
Scott Powell has enjoyed a career split between theory and practice with over 25 years of experience as an entrepreneur and rainmaker in several industries. He joins the Discovery Institute after having been a fellow at Stanford’s Hoover Institution for six years and serving as a managing partner at a consulting firm, RemingtonRand. His research and writing has resulted in over 250 published articles on economics, business and regulation. Scott Powell graduated from the University of Chicago with honors (B.A. and M.A.) and received his Ph.D. in political and economic theory from Boston University in 1987, writing his dissertation on the determinants of entrepreneurial activity and economic growth.