As someone who tries to teach students about evidence, support, reasoning, etc., stuff like this just makes me mad, and I”m not sure if it’s because the cartoonist is ignorant of basic background information and economics, or because he thinks his readers are that ignorant, or because he’s right. (I’m sure he’s right a lot, I’m just not sure how right).
The cartoon is correct as far as it goes, but it leaves out a key point, a point that would establish whatever blame there is in this more accurately.
Even if you didn’t know about the Community Reinvestment Act (which we’ll consider in a moment), a little bit of thinking based on what’s presented here should bring you to a different conclusion than the cartoonist implies, and it’s contained in this statement: “And taxpayers with no connection to the bank had to pay all the money to fix it.”
The eye-opening question should be: “Why?” To expand a little bit, “Why did the taxpayers have to fix it?” Because they told the banker ahead of time through their congresscritters that they would. Continue reading