Friday, June 1, 2018

Divergent Goals


US voters know that Government and Corporations have colluded since 1775. Most of the time, this partnership worked to the benefit of the citizens. The partnership secured independence from Britain and expanded the US with the Louisiana Purchase, the Mexican War    and the Indian Wars. The partnership allowed US citizens to participate and benefit from the Industrial Revolution and lead the world in manufacturing. It allowed the US to become the dominant global power, a living example of what a free market economy could do and its citizens relatively wealthy.

There were times when US citizens had to suffer when the same partnership made mistakes. Suffering occurred from illness and natural disasters and wars. But US citizens also suffer because of their own mistakes like buying into costly scams initiated by the partnership.

The Reagan election in 1980 signaled a rift between government and business and resulted tax cuts and economic resurgence.

The Trump election signaled that US citizens had become skeptical of the partnership and wanted to fix the “unintended consequences” of the partner’s escapades.

We need to understand that the partnership and citizens have divergent goals and it’s Trump and the citizens against the Corporations and the “Government”.

Government is its own industry and its own family. If government can bribe voters and get them to want more free stuff, government can pass laws and acquire industries. As an industry it wants to grow and to do that it gladly acquires industries corporations no longer want.  They wanted government funded reinsurance and they got it.

The Federal Housing Administration (FHA) is a United States government agency created in part by the National Housing Act of 1934. The FHA sets standards for construction and underwriting and insures loans made by banks and other private lenders for home building.

Fannie Mae was created in 1938 as part of Franklin Delano Roosevelt's New Deal. The collapse of the national housing market in the wake of the Great Depression discouraged private lenders from investing in home loans. ... This lead to the development of what is now known as the secondary mortgage market.

Fannie Mae and Freddie Mac are in trouble. That much even the occasional reader of newspaper headlines knows. But who are they, exactly, and what have they done to prompt the federal government to announce it was standing by with a possible multibillion-dollar bailout?
Fannie Mae and Freddie Mac are America's two largest mortgage companies, together holding or guaranteeing some $5 trillion in debt. Their names are semi-acronyms for their original government monikers: the Federal National Mortgage Association (Fannie) and the Federal Home Loan Mortgage Corporation (Freddie). Published July 2008.

To expanding the number of households that could own homes, the government decided to subsidize mortgages and require home buyers to pay mortgage insurance to protect the lenders.  In 1993, Congress passed the Community Reinvestment Act that required lenders to give mortgages to unqualified buyers and that resulted in the 2008 Meltdown. This law has not been repealed. The housing industry wants to retain these government subsidies and would resist the privatization of lending even though these subsidies are unsustainable. If the government would get out of the mortgage subsidy business, private lenders would return to limiting mortgages to qualified buyers. This might work after the US economy and the middle class are restored.

In the 1960s, government began to heavily subsidize healthcare to usher in medical advances. Big Pharma, and medical equipment companies allied with health insurance companies and pushed more NIH grants, Medicare, Medicaid and Welfare. This resulted in a meteoric rise in healthcare costs, toxic treatment practices and no cures.

At the same time, government was increasing subsidies for education and this had the same result with the meteoric rise in education costs, toxic courses, Communist faculties and Socialism. Churches abandoned their role in providing healthcare and education led by Vatican II in 1962. God was replaced by the State.

Government has been able to muffle the will of the voter with laws that assume elected officials can do whatever they want.  Corporations have adopted secular humanist “value” scams to support really stupid legislation. Taxpayers are still holding the bag with our national debt and unfunded liabilities. US bankruptcy is assured unless voters clean house in Congress of all Statists.

Norb Leahy, Dunwoody GA Tea Party Leader


No comments: