by Mike Konczal, Next New Deal Aaron Bady has a fantastic piece on the boosters who argue that MOOCs and other forms of online education will fundamentally transform higher education, addressed as a response to Clay Shirky. There’s a few important moves to watch when people make this line of argument. Many who prize the …
by Guest Author Mike Konczal
Sigh. Mayor Bloomberg:
“It was not the banks that created the mortgage crisis. It was, plain and simple, Congress, who forced everybody to go and give mortgages to people who were on the cusp… But they were the ones who pushed Fannie and Freddie to make a bunch of loans that were imprudent, if you will. They were the ones that pushed the banks to loan to everybody.”
It seems there are people who can’t accept that some markets, particularly financial ones, are disastrous when completely unregulated — and thus find any far-fetched excuse to blame the government instead. Since this line of argument continues to pop up, how should one respond to the idea that Congress and Fannie Mae/Freddie Mac caused the housing crisis? Here are six facts to back you up:
The major debate is over this data point: stimulus-funded projects hired 42.1 percent from the pool of unemployed people. The authors of the paper argue that this is a problem, as it is similar to the rates of hiring from the unemployed that have been observed from the 1990s-2000s.
Unemployment is particularly bad for those recently graduated from college. Are we seeing a genration permanently detached from formal labor markets, an economy of insiders and outsiders?