Conservative First

July 29, 2009

Summer Reading: The Housing Boom and Bust

Filed under: Economics — Sofie @ 12:47 pm
Tags: , , , ,

If you want to understand what caused The Housing Boom and Bust, you should read Thomas Sowell’s book by that title (New York:  Basic Books, 2009).  I already knew about government-backed liberal activists coercing banks to make loans to people who couldn’t pay them back.  I wasn’t aware that “smart growth” policies caused high housing prices in some areas throughout the country giving liberals an excuse to claim there was a need for “affordable housing” and giving progressives in the federal government an excuse to interfere in the private sector.  In Sowell’s words, “As we have already seen, government regulation adn intervention have been at the heart of the conditions that set the state for the current housing market disaster” (68).

He begins his final chapter by stating that there are many things we need to “unlearn” from the “current economic crisis.”  First, we should question “the conclusion that many seem to be deriving from today’s economic debacle–namely, that more government regulation of the housing and financial markets could have prevented the housing boom and bust, with its dire repercussions, and more government regulation is the way to prevent a recurrence of today’s crisis.”  Instead, we should remember that it was government interference that caused the “current economic crisis” (117).

Sowell also asks if the Obama administration’s “early initiatives indicate that their primary goal is to put the current economic crisis behind us, as quickly and as fully as possible, or to use that crisis to impose new and enduring changes in the American economy and society.”  His conclusion is that they are “using a crisis to fundamentally and enduringly change the institutions of American society” (141-45), as Obama promised before his inauguration and as Glenn Beck has been pointing out lately, too.

If you want more insight into how progressives/liberals/statists are working to transform the United States, read The Housing Boom and Bust.

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