I suggested last year that President Obama adopt “my work here is done” as a campaign slogan.
But I want to make a serious point.
For those of us who want the prosperity and liberty made possible by smaller government and free markets, it would be ideal if the President actually did think his work was done. If that was the case, presumably he wouldn’t propose new schemes to expand the size and scope of the public sector.
Unfortunately, that’s not the case. Indeed, he bragged about providing handouts, subsidies, and bailouts for housing in his recent pivot-to-the-economy speech and he specifically stated “We’re not done yet.”
As I said in this interview on FBN, that phrase could replace “I’m from Washington and I’m here to help you” as the most frightening sentence in the English language.
Obama’s phrase is particularly distressing since he wants more intervention in housing markets – yet it was misguided government intervention that caused the housing bubble and financial crisis in the first place!
Simply stated, you don’t solve the problems caused by the Fed’s easy-money policy with more government. And you don’t solve the problems caused by corrupt Fannie Mae-Freddie Mac subsidies with more government.
The right approach is to get government out of housing altogether. That means getting rid of the Department of Housing and Urban Development. It means privatizing Fannie Mae and Freddie Mac. It even means eliminating preferences for housing in the tax code as part of a shift to a simple and fair system like the flat tax.
Once we achieve all these goals, then we can say “we’re done”…and move on to our other objectives, like dealing with the damage caused by government in the health sector, the education sector, the financial markets sector, etc, etc…
P.S. Some people doubtlessly will complain that bad things will happen if the government no longer is involved in housing, but I think we’ll survive just fine without bureaucrats screwing over poor people and mandating “emotional support” animals in college dorms.