How Social Justice Crashed the Economy

Ever since FDR’s New Deal initiative, Democrats have gathered electoral support through the distribution of federal program dollars.  They justify their spending by saying it is done to pursue “social justice” and “fairness.”  The great political value of these concepts is that they are open-ended; they do not imply, nor do they allow, any limits. While Republicans have struggled to convince voters that open-ended federal spending will eventually hurt working Americans and the poor, the mortgage crash of 2008 may provide such an opportunity.  This is because the mortgage changes promoted by the standards of social justice and fairness had a clear beginning, middle, and implosive end. The social justice rationale was expressed in the 1992 Boston Federal Reserve paper Mortgage lending in Boston, which concluded that racial discrimination alone was responsible for the low number of mortgage approvals granted to black and Hispanic home...(Read Full Article)