Wall Street continues its push to repeal the Dodd-Frank Act, which put much-needed regulations on the financial sector. The latest sock puppet for the investors on America’s canker sore to speak up against Dodd-Frank is Texas Representative Jeb Hensarling, who called it Obamacare for the economy, among other bizarre assertions, on the eve of its fifth anniversary.
The (other) idiot from Texas
One of the most difficult and contentious rules from the Dodd-Frank mandate is the Volcker rule, which will go into full effect Thursday. This rule bars banks that take government-issued deposits from making speculative investments.
Tellingly, the Volcker rule, along with the rest of Dodd-Frank, became law with next to no Republican support. Which is why, on the eve of the fifth anniversary, the Republicans are trying to repeal it; and none are more excited than Representative Jeb Hensarling:
And just like Obamacare, Dodd-Frank has left us with fewer choices, higher costs and less freedom. It’s evident that Dodd-Frank has made us less prosperous and less free. If we want strong economic growth, more freedom, and an end to bailouts, it’s time we commit to making sure this anniversary is Dodd-Frank’s last anniversary.
Obamacare ensured that 6.5 million people were enrolled with health insurance by the end of 2014 and by the end of the 2015 enrollment, those numbers were even higher, at 11.7 million. The number of uninsured Americans plummeted, the cost-curbing provisions in the bill caused healthcare spending to plummet and stabilized the price of inflation and the ACA has helped to fight fraud, saving more than $19.2 billion.
If this is what he’s comparing Dodd-Frank too, then we need more Dodd-Frank, not less.
The International Monetary Fund noted in a recent report banks in the United States are healthier and stronger than they were five years ago; and called for more regulation, not less, confirming the necessity of the Dodd-Frank Act.
That hasn’t stopped Hensarling, however. On his House website, Hensarling makes a number of bizarre claims about Dodd-Frank:
$27 billion will be taken out of the economy because of Dodd-Frank
Yet, removing Dodd-Frank and repealing the only reform to come out of the Great Recession will do far more damage than Dodd-Frank ever could.
2,600 new full-time Federal employees will need to be hired to implement the Act’s 400-plus regulatory mandates at a cost to taxpayers of $3 billion during just the first five years of implementation.
He’s complaining that it creates new full-time work, but gleefully ignores that his own party passed tax cuts for that’ll cost the taxpayers $287 billion over the next 10 years. That’s a Republican for you.
Feature image via Wikimedia Commons