Tuesday, July 2, 2013

Feds Pick the Recession Losers, Impoverish Us For Doing So

RealClearMarkets - The Feds Pick the Recession's Losers, Impoverish Us For Doing So: " . . . . Ex post facto laws are expressly prohibited by the U.S Constitution (Article 1, Section 9), meaning no applying new laws to actions that have already occurred. Yet the federal government is clearly changing the rules as it goes. By reallocating losses from the recession, rewarding people who behaved recklessly and punishing people who were nothing more than innocent bystanders, the federal government is creating a situation in which contracts and other market transactions cannot be trusted to be enforced as enacted. When people and businesses cannot rely on the enforcement of contracts, fewer contracts will be entered into and much effort and expense will be wasted on additional lawyers and measures designed to protect each party's interests. All of this means a nation that will be poorer in the long run. The federal government has neglected this considerable cost to its actions. Over time those losses will be far greater than the amount of wealth lost in the recession. (read more at link above - Jeffrey Dorfman is a professor of economics at the University of Georgia, and the author of the e-book, Ending the Era of the Free Lunch. ")

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