Alan West - Townhall.com
March 20, 2015
A fundamental tenet of socialist economic theory is the nationalization of production. That means more government control over the means of economic activity advancing more public and less private sector investment, ingenuity, and innovation. There are those who embrace the concept that government can provide services better and be a fair competitor with the private sector. That of course is a horrible misconception.
First, government does not have to raise capital, it simply raises taxes – or it can print money to fund its programs. Government does not have to pay for advertising its “product,” it uses unlimited taxpayer funds. Government does not have to produce a superior product, it can use the legislative process to “mandate” – we call it coerce – behavior, forcing acceptance.
In the late 1970s, President Jimmy Carter felt every American had a “right to own a home” and thus created the Community Reinvestment Act. The result some 30 years later was a mortgage meltdown due to the government-created subprime crisis. Legislation and actions were advanced to support this scheme – such as repealing the Glass-Steagall Act – along with the expansion of GSEs (Government Sponsored Enterprises) such as Fannie Mae and Freddie Mac.