Date: Wed, 1 Sep 2010 22:12:36 -0400
From: Donna Kelly
Subject: Diagnosing the problem
The first step to solving any problem is correctly diagnosing it. In Karen Crowell’s recent post regarding Brian Bock’s candidacy she displayed a serious misunderstanding of the facts. She claims it was the private sector that was responsible for creating our current economic problems while completely ignoring the role of government.
Without going into great detail, since it’s so easy to find the facts, it was the government’s well-intentioned but overzealous push to increase homeownership that was the main cause of our financial problems. From pushing banks to use less restrictive underwriting standards to give loans to people who couldn’t afford them, to pushing Fannie and Freddie to buy up increasing numbers of these riskier mortgages, all funded by artificially low interest rates, the federal government was a major force in driving the housing bubble that created the economic crisis.
Ms. Crowell’s solution? More government regulation. Only a blind faith in the inherent goodness of government regulation would allow anyone to look at what has happened in the last few years and think that more government involvement is the answer. Or allow someone to blame the private sector without recognizing the problem inherent in the government.
She claims government oversight discourages the private sector from running up our tax bills by flooding the market with expensive new homes. Ever heard of supply and demand? If the market is truly flooded with expensive goods, meaning more than it can support, competition will drive the price and/or quantity down. Government regulations on the other hand, in the form of restrictive zoning regulations, excessive permit fees, impact fees and regulatory requirements all drive up the cost of new housing with no possible remedy. It’s government excess that drives up the cost of property and hence property and tax values not the private sector.
When Brian Bock is elected he’ll work to bring county regulations into balance with actual needs and not the excessive pandering to special interests we’ve seen in recent years. Believing the government is the problem is a perfect reason to want to get in there and fix it. If the government is over-regulating or mis-regulating, someone with a different view is needed to get in there and correct it.
Ms. Crowell expects elected officials to work miracles. That seems like a strange view. I always thought of miracle workers as religious figures, not elected officials. It’s the people of the community that create the jobs and take care of one another. The government cannot create jobs or wealth, it can only provide services and redistribute wealth.
No one believes that a fresh perspective is all it will take to turn things around. It will take time and a lot of hard work. But continuing on the wrong path will not improve anything. A fresh perspective will allow for different ideas and approaches to be considered. The two county commissioners most responsible for directing current policy spent their careers in government positions. They have no private sector experience. If we’re looking for experience that is pertinent to economic development and creating jobs wouldn’t it make more sense to look to people that have created jobs or at least worked in the private sector? Maybe instead of expecting the private sector to work with government it’s time for government to work with the private sector.
Ms. Crowell is apparently one who believes that government should be the major service provider and trusts to government to always do the right thing. I’m sure she appreciates being able to follow the Chatlist on her UNC email account.
Donna Kelly
Pittsboro