Congress Must Find Balance in Dealing with Economic Woes
Where the housing market is concerned, I urge a sense of caution as Congress and the federal government look to act. Whenever the government interferes with the marketplace, there is the potential to create a so-called "moral hazard" that can affect future economic decisions and transactions because market actors are insulated from risk. It is very plausible to suggest that if the government bails everyone out of this mess then we will continue to bail out bad actors in the future and any market discipline that currently remains will continue to be eroded. We must find the delicate balance of allowing the free market to correct itself while helping those who were unfairly harmed and minimizing the impact on the broader economy.
And, while the headlines are consumed with mortgage woes, it is critical that Congress consider a stimulus package to boost consumer and business confidence in the economy. Congress should pass meaningful legislation like the Middle Class Jobs Protection Act, which reinforces the prospects for long-term sustainable growth, and is not just a temporary, politically targeted fix. Congress should also make the Republican tax cuts permanent to help American taxpayers with their family budgets.
To no one's surprise, the Democrats are reported to be simply considering the same old tax and spend policies. America's hardworking taxpayers already pay too much to Uncle Sam, and they deserve better.
By N.J. GOP Rep. Scott Garrett