Ratcheted Up

In an August posting on NRO’s The Corner titled “Give Me Liberty or Give Me Death Panels," Mark Steyn argued that moderate opposition to the health care bill might lead to the kind of compromise “that will get Democrats far enough…that the Big Government ratchet effect will do the rest.”For those unfamiliar with the ratchet effect, allow me to explain.The Big Government ratchet is on full display on Wall Street. First was the establishment of Fannie Mae and Freddy Mac (Est. in 1938 and 1970 respectively). Their purpose was “to provide liquidity, stability and affordability to the U.S. housing and mortgage markets.” These “government sponsored entities” dwelt in the background of American thought for decades, with few people paying them notice. Unsatisfied with the level of home ownership achieved through Freddy and Fannie alone, the government adopted a bevy of programs, regulations and statistical quotas that, for...(Read Full Post)