How Social Justice Crashed the Economy
Michael Bargo, Jr. / American Thinker
Ever since FDR’s New Deal initiative, Democrats have gathered electoral support through the distribution of federal program dollars. They justify their spending by saying it is done to pursue “social justice” and “fairness.” The great political value of these concepts is that they are open-ended; they do not imply, nor do they allow, any limits.
While Republicans have struggled to convince voters that open-ended federal spending will eventually hurt working Americans and the poor, the mortgage crash of 2008 may provide such an opportunity. This is because the mortgage changes promoted by the standards of social justice and fairness had a clear beginning, middle, and implosive end.
But the Boston Federal Reserve did not recommend specific financial guidelines that should be used to qualify borrowers; no method of measuring fairness was suggested. Previously, banks required mortgage applicants to meet the traditional loan qualification standards known as the three Cs: credit, collateral, and capacity.
read more at American Thinker:
http://americanthinker.com/2014/03/how_social_justice_crashed_the_economy.html
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