“The cherished
American ideal of self-reliance has a flip side”[1] Before getting to the implications, or flip side, I want to fill out
what informs this ideal. One could add to it the ideological stance that came
into its own in 1980 with the election of Ronald Reagan, who declared that government is the problem. This implies
that government should be minimized, and otherwise corrected as much as
possible. Government is hardly to be viewed as the solution. This is the legacy
of the Kennedy assassinations of the 1960s, the Vietnam War, and Watergate as
well as Ford’s pathetic “WIN” buttons and Carter’s micromanagement and failure
in regard to the hostages in Iran. I was not old enough for the Kennedys’
truncated optimism (and that of Martin Luther King) to resonate; I knew the
political (and economic) pessimism of the 1970s and the energizing “fix it”
mentality of the early 1980s. Of course, Reagan’s “new federalism” failed, as
did his aim to balance the federal budget, and the jury is still out on whether
“peace through strength” pushed the USSR off the cliff.
The full essay is at "Moral Hazard in Mortgages."
