Politicians just can’t help but create troubled economies
Politicians say they can “make the economy work better.” I once believed they could. But years of reporting taught me politicians’ attempts to “fix” the economy usually make things worse. Twenty years ago, Republicans and Democrats helped create the Great Recession by telling government-backed Fannie Mae and Freddie Mac to buy more of people’s mortgages because, as President George W. Bush put it, “Owning a home is a part of (the American) dream.” But that guarantee inspired lenders to approve dubious mortgages, given to riskier borrowers. Housing prices shot up ...