In a knee-jerk reaction to panic and fear over the current financial crisis, the government issued a $700 billion dollar bailout bill last week. Rather than considering the cause of the “toxic loans” at the heart of this crisis, Congress decided that it had to immediately do something—anything.
It is as if a man went to the hospital with low blood pressure and a low heart rate, and the doctor prescribed crack cocaine to treat his symptoms. After all, crack will raise the patient’s heart rate and blood pressure for a while, and even give him a temporary feeling of euphoria. But over the long term, using crack will severely weaken his heart and mind, making him an easy target for any infectious disease that comes along.
This is exactly what the Bailout Bill will do: temporarily treat the symptoms while allowing the disease (government intervention in the economy) to metastasize further. The only way to preserve long-term economic health in America is to attack the disease at its source. End Fannie Mae and Freddie Mac, neuter the U.S. Dept of Housing and Urban Development, repeal the Community Reinvestment Act, and take away the Fed’s power to tamper with naturally functioning markets.
The Undercurrent is a magazine distributed at college campuses and communities across the country. We release a print edition once per semester, and in the interim, regularly post additional articles, blog entries, and campus media responses reports to our website.
The Undercurrent's cultural commentary is based on Ayn Rand's philosophy, Objectivism. Objectivism, which animates Ayn Rand's fiction, is a systematic philosophy of life. It holds that the universe is orderly and comprehensible, that man survives by reason, that his life and happiness comprise his highest moral purpose, and that he flourishes only in a society that protects his individual rights.
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