Russ Roberts’ testimony in front of the House Committee on Oversight and Government Reform is superb. Read it (it’s short). Wall Street deserves plenty of blame for the financial crisis. But Washington deserves more:

When your teenager drives drunk and wrecks the car, and you keep giving him a do-over—
repairing the car and handing him back the keys—he’s going to keep driving
drunk. Washington keeps giving the bad banks and Wall Street firms a do-over. Here are
the keys. Keep driving. The story always…

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The federal government has no problem paying exorbitant sums of money to people who head failed government agencies like Freddie Mac. Its CEO will receive compensation estimated at $5.5 million. The Federal Housing Finance Agency took direct control over Freddie Mac, a government-sponsored enterprise, after it ran up tens of billions of dollars in red ink buying risky mortgages, without adequate capital reserves. At the direction of the Obama administration, Freddie Mac is now running up $30 billion in losses to…

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Question: What do you get when you combine a $700 billion “stimulus” package, $1.1 trillion in wealth-destroying regulatory compliance costs, a mountainous non-discretionary entitlement obligation, bailouts for large manufacturers, an small army of unelected czars, and a $1.4 federal budget deficit?

Answer: Way too much government!

In a new CEI paper, One Nation, Ungovernable?, Clyde Wayne Crews lays out an agenda for setting America on the path to economic recovery. From lifting burdensome regulations and restrictions on executive compensation to fostering competition and…

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The mortgage meltdown was caused partly by the government, which created an artificial market for bad mortgages.  The Washington Examiner cites a recent study by Peter Wallison, who had prophetically warned about risky financial practices for years, finding that two-thirds of all bad mortgages were either “bought by government agencies or required to be bought by private companies under government pressure.” Now, the Federal Housing Administration is ramping up its purchases of low-quality mortgage loans, threatening taxpayers with hundreds of billions of dollars…

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The mortgage meltdown was caused partly by the government, which created an artificial market for bad mortgages.  The Washington Examiner cites a recent study by Peter Wallison, who had prophetically warned about risky financial practices for years, finding that two-thirds of all bad mortgages were either “bought by government agencies or required to be bought by private companies under government pressure.” Now, the Federal Housing Administration is ramping up its purchases of low-quality mortgage loans, threatening taxpayers with hundreds of billions of dollars…

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Bank of America recently announced that it will impose annual fees on some of its cardholders.  This is in response to the CARD Act (Credit Card Accountability Responsibility and Disclosure Act of 2009), which effectively shifts costs to responsible people from irresponsible people, forcing banks to increase charges to responsible credit card holders.

The CARD Act has also wiped out many cash-back and rewards programs and rebates on credit cards, something earlier chronicled here.  Despite that fact, its passage was trumpeted by President Obama…

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Veteran political commentator Michael Barone reports that liberal congressional leaders are pushing policies to “inflate the housing bubble again,” even though “our financial system broke down because we had, thanks to government policies, a housing bubble.”

Congressional leaders are ignoring warnings from experts across the political spectrum, such as conservative Peter Wallison’s October 16 piece in the Wall Street Journal, titled “Barney Frank, Predatory Lender,” and liberal Charles Lane’s recent piece in the Washington Post, “Doubling Down On the Wrong Housing Policy.”  (Wallison, a banking expert, prophetically…

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George Mason University Professor Ilya Somin explains how the Obama administration is expanding the awful policies that caused the mortgage crisis, like having taxpayers effectively underwrite risky-mortgage loans by bailing out GSEs at a cost of hundreds of billions of dollars.  Now, the administration is stepping up Federal Housing Administration subsidies for risky, junky mortgage loans that are likely to default in large numbers.

(The Obama administration doesn’t seem to have learned history’s lessons overseas, either.  White House Communications Director Anita Dunn cites as…

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Detractors of capitalism decry that it caters to special interests. The opposite is actually true. Just look at what’s happened in the last year.

Most of Wall Street came to government asking for a bailout when the government-created housing bubble popped.

The Big Three automakers also went to Washington for largesse when their customers came to prefer Toyotas and Hondas.

Health insurance companies stand to make a killing if Obamacare passes.

T. Boone Pickens and Al Gore would make millions from environmental legislation.

Ludwig von…

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Unemployment has risen to 9.8 percent, a 26-year high.

That’s much higher than the Obama administration predicted unemployment would rise, if Congress had refused to pass his $800 billion stimulus package.  The administration claimed unemployment would rise to 8 percent without a stimulus.

Small businesses are finding it more difficult than ever to borrow badly needed money to meet their payrolls.  New financial regulations backed by the administration are contributing to a terrible credit crunch.  Meanwhile, the wealthy Wall Street investment bank Goldman Sachs, perhaps the…

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Tomorrow, 7-Eleven Inc. and other big retail chains will hit Capitol Hill to offer Congress members and their staffs a supersize serving of hypocrisy. Retailers, who rightly complain about costly government mandates in health care and other areas, are now calling for Congress slap price controls on the interchange fees they pay to banks and credit unions for services associated with the credit and debit cards of retail consumers.

7-Eleven has fine stores that offer many conveniences to their customers, but…

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Journalists have a tendency to present overly-simple explanations of current events that often turn out to be completely false as well. Part of this is due to journalists trying to present a clear, digestible story to readers, and part is due to the fact that most of them have no formal training or particular expertise on the subjects they write about. Case in point is Barry C. Lynn’s latest piece in The American Prospect, which alleges that concentration of the auto…

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While Obama ally ACORN attempts to gag whistleblowers who exposed its role in a recent scandal, the Obama administration is trying to gag critics of its health-care plan, which the Congressional Budget Office says could wipe out many Medicare Advantage programs relied on by the elderly.  (”The Obama Administration wants to seriously curtail or end Medicare Advantage.”)

It has issued a gag order to Humana, a health insurer that provides Medicare Advantage services, ordering it not to tell customers about how Obamacare could reduce the availability of…

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In his 2008 campaign, Barack Obama talked a lot about “bipartisanship,” but in office, he has governed from the far left, on both domestic and foreign policy, by meddling overseas in favor of left-wing would-be dictators, and at home in support of powerful left-wing unions, at the expense of taxpayers, airline security, the Constitution, and the rule of law.  (One possible exception to his left-wing path is his support for the obscene Wall Street bailouts, which disgusted left and right…

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People are often surprised to hear how similar President Obama’s policies are to President Bush’s. They shouldn’t be. One may be a Republican and the other a Democrat, but make no mistake. Bush and Obama are two peas in a pod:

-Bush signed a $700 billion bank bailout bill. Obama continued the policy. And he extended it to other sectors, such as the automobile industry.

-Bush tried fiscal stimulus twice while in power. With some help from the Bush team, Obama oversaw the…

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The global-warming industry would probably still be solely owned by assoted cranks and romantics (and the odd vice president) if it weren’t for a bunch of CEOs taking a leaf from Enron’s playbook and attempting to monetize the issue. Playing the bootleggers in a classic bootleggers and baptists alliance, these businessmen have realized that they can get the government to increase their profits by means of “cap and trade” and similar regulatory interventions, at the expense of other businesses and the paying…

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 One year after the Wall Street meltdown, President Obama is touting new regulations he says are urgent for preventing a crisis like this from ever happening again. 

 “Obama challenges Wall Street to support his regulations,” reads the headline of a story from McClatchy Newspapers on Obama’s Monday speech at Federal Hall, opposite the New York Stock Exchange. In the address, Obama asked the audience of Wall Street traders ”to embrace serious financial reform, not fight it.”

But “embracing” Obama’s planned regulation may be easier for the…

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In a new poll, Gallup finds public support for organized labor at its lowest level since it began taking the survey.

Gallup finds organized labor taking a significant image hit in the past year. While 66% of Americans continue to believe unions are beneficial to their own members, a slight majority now say unions hurt the nation’s economy. More broadly, fewer than half of Americans — 48%, an all-time low — approve of labor unions, down from 59% a year ago.

These results…

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Tributes are pouring in for Edward M. “Ted” Kennedy, who lost his battle with brain cancer late Tuesday evening at the age of 77. Most tributes to the “Liberal Lion” focus on his accomplishments at expanding government spending and regulation. And indeed, those were the bulk of his achievements.

But for a brief, shining moment, in the mid to late 1970s, Kennedy viewed smaller government as the most compassionate answer in one area of economic life: transportation. Kennedy was the prime mover…

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In the tradition of the Reader’s Digest condensation of F.A. Hayek’s The Road to Serfdom, Joseph Schumpeter’s Can Capitalism Survive? Creative Destruction and the Future of the Global Economy is coming out on September 1.

Can Capitalism Survive? is a condensation of Schumpeter’s 431-page masterwork of 1942, Capitalism, Socialism, and Democracy. The timing couldn’t be better. With economic crisis and recession dominating the news, people are as interested in the topic as ever. The trouble is, they don’t understand it very well.…

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