The Dean’s Blog

Over the last month, I’ve heard announcements for many rescue plans.  One plan is meant to help those Americans with homes who are struggling to pay their mortgages. I haven’t read about much detail, but this plan of the week is meant to reduce the mortgage payments of financially struggling homeowners through government-backed refinancing arrangements. 

A lot of the chatter is about whether this and other plans to get the economy back on track are aimed at the right people and industries.  Some believe this is a difficult plan to implement and that it will not actually be helpful to stop and reduce foreclosures.  Many raise the notion that people who made risky or downright poor decisions are undeserving of America’s help.  Again we question the fairness of these plans – that this a classic case where the road to Hell is paved with good intentions.  We are setting up a society that takes risks and makes bad decisions with the knowledge that if the industry or social issue is important and widespread enough, then the nation will step in to help.

In the case of mortgage assistance for private homes, we definitely question the deservingness of individuals and are left with a set of questions about what to do – nothing at all as nothing is owed to these people who made bad and risky decisions; do something because some of these folks were forced into the purchase of these homes; or, that the bad decisions don’t matter because people in homes are too important to a national economic strategy. 

This Friday, let’s talk about whether bailouts, especially for individuals owning private property and businesses are full of moral hazards.  Do we owe anything to individuals for their bad decisions? What? Why? What if their bad decisions have an impact on all of us? (don’t all of our decisions have an impact on the rest of us?) See you Friday from 3-5 p.m. in the Howard Thurman Center.  I’ll bring the coffee you bring the conversation.

Until then, be safe and stay well.