American Elephants


The House Took a Big Step to Fix the Economy Today by The Elephant's Child

While the Washington media was glued to every word emanating from former FBI director James Comey’s testimony before the Senate Intelligence Committee in the collapsing hope that the next words would provide the ammunition to finally impeach President Trump, a much bigger story going on in the House was being completely ignored.

The Financial Choice Act, which the House approved by a 233-186 vote (no Democrats voted for it) got no attention at all. Yet this bill can be a very big deal for the economy. It repeals the failed Dodd-Frank banking law, 22,000 pages of regulations, which cost the economy $36 billion in the first six years of its implementation. Dodd-Frank , signed into law by President Obama in the wake of the financial crisis, was supposed to be foster innovation, stop taxpayer bailouts once and for all, and be good for the economy. Instead, it choked competition in banking more than 1,700 banksĀ  have disappeared, the banking industry became more concentrated and did nothing to reduce risk in the financial industry.

According to the American Action Forum, if Dodd-Frank were left in place it would cut the nation’s GDP by nearly $900 billion, and slow any hope of growth dramatically. Dodd-Frank created the unaccountable Consumer Financial Protection Bureau which has expanded in size and regulatory reach, collecting massive amounts of sensitive financial data on millions of Americans.

The 2010 Dodd-Frank law has been a disaster, responsible for killing hundreds of thousands of American jobs, and slowed economic growth by making credit harder to come by by those who need it most.

Late last year, a U.S. appeals court ruled that the design of the CFPB was unconstitutional because it gave the director “more unilateral authority than any other officer in any of the three branches of the U.S. government, other than the president.”

The House Bill strips out the worst parts of Dodd-Frank, reins in the CFPB, but does not eliminate them both. The Democrats in the Senate are determined to stop this bill completely, whether because of unconcern for the economy or an attempt to save Obama’s “legacy.” The bill will probably be watered down to some form that might overcome a Democrat filibuster. The CFPB needs to be shut down completely, not “reformed.”

 




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