Chris Bowers complains about "the corporate welfare style typical of American government--privatize the profits, socialize the risk". This is not a left-wing criticism - it's a genuine problem, both for the country (as illustrated by Freddie Mac and Fannie Mae going "under government control") and for the Right (which sets itself up to lose a fight about the size of government with every intervention in industry).
This is how government grows...
- Socialize Risk: Government intervenes in an industry to "solve" some apparent and visible problem. This is done "for the people."
- Unintended Consequences: This intervention merely shifts the costs to new areas and sweeps problems under the carpet, where they accumulate.
- Blame The Market: Government intervention is not blamed, because the people who support it assume their good intentions could not be responsible for bad things.
- Socialize Profit: The Left demands Something Be Done by people with Good Intentions. Politicians comply. This is done "for the people."
Unfortunately, our political structure comes at this from four different places.
- Democratic politicians, organizations and activists are happy to go along with Steps 1-4, because, hey, #4 was their goal in the first place.
- Republican politicians and organizations go along with Steps 1-3, only objecting at Step #4. By which time it is too late.
- Business goes along with Step #1, and attempts to use Step #2 to get more of Step #1.
- Libertarians believe the problem occurs at Step #1. Once Step #1 is conceded, we've already lost on steps 2-4. But libertarians and limited government conservatives have relatively little power.
Now, we are at Step #4 - essentially nationalizing Freddie Mac and Fannie Mae. As Chris Bowers writes, "nationalizing industries ... is the literal definition of socialism and big government". Of course, he thinks that is a good thing, also writing that "nationaliz[ing] the mortgage industry ... actually seems like a good idea to me."