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Government Democrats Destroy Economy
Actual current news headlines reveal how democratic party policies are destroying the U.S. economy:
- FDIC shuts four more banks as failures reach 119 this year
- Freddie Mac loses $6.3 billion
- Consumer borrowing drops $14.8 billion due to rising unemployment and tight credit conditions
- Jobless rate hits 10.2%, the first time it's exceeded 10% since 1983
- Fannie Mae seeks $15 billion more in government aid
Why are banks failing and why is credit tight? Because democrats have made it too risky for lenders to extend credit. Democrats want banks to accept high risks, but not to take steps to protect against losses. Banks would rather tighten credit than to take the risks forced upon them. For example: To offset losses caused by defaults, banks used to increase the interest rates on those risky accounts. But now; however, democrats have banned that practice, hence banks would rather not lend money at all.
You might think "That's good... without credit people cannot get into debt!"
There's a much larger impact than just that. With less credit, there are less purchases. With less purchases, there is less manufacturing... and this means less jobs. Instead of growing, businesses cut back. As more businesses cut back; and some close, it creates a domino affect that drives out other businesses. Meanwhile, unemployment escalates. More people get behind on their bills. Democrats create more laws to control interest rates, and even fewer banks will extend credit because they cannot survive default losses. Lesser credit... lesser purchases... lesser manufacturing and yet more business close and unemployment rises yet again.
This is not the way to fix the economy. So why are democrats focused on the credit industry? Because it makes them look like heroes in the eyes of voters, and their main objective is to get re-elected even at the expense of the economy.
What will fix the problem? Allowing the economy and business to return to a free-market, where businesses can raise and lower interest rates and prices in their efforts to make a profit while also competiting against other companies for customers.
Yeah, it's that easy. Tell your legislatures to withdraw credit regulations.
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