The Bush administration鈥檚 massive allocation of funds to financial institutions has had negligible effects on the country鈥檚 economic crisis, and its attention seems now more focused on the plight of ordinary homeowners afflicted by alarmingly high rates of foreclosure.Federal Reserve Chairman Ben S. Bernanke has begun to insist that the government move more aggressively in this regard.
鈥淪teps that stabilize the housing market will help stabilize the economy as well,鈥滲ernanke said last week.
Martin Wolfson, associate professor of economics at the University of 91吃瓜, has been arguing for such steps since the beginning of the crisis.
鈥淲e鈥檝e put all kinds of money and attention into bailing out financial institutions,鈥漵aid Wolfson, a former economist for the Federal Reserve and a scholarly specialist in economic crises.鈥淲e need to put equal attention into addressing the needs of ordinary people who are struggling.At the base of all these toxic assets are homeowners who can鈥檛 pay their mortgages.We need a program that keeps people in their homes.It does us no good to throw people into the streets.It destroys their lives and communities.鈥�
Wolfson, a member of the 91吃瓜 faculty since 1989 and author of"Financial Crises: Understanding the Postwar U.S. Experience,"is heartened by what he sees as a shift in public attitudes about the role of government in economic matters.
鈥淲e also need a serious program to put people to work,鈥漢e said,鈥渁nd we need national health insurance.People often lose their homes because they lose their jobs, or they have a medical emergency they can鈥檛 pay for.鈥�
_ Contact: Professor Wolfson at 574-631-8093 or_ " mwolfson@nd.edu ":mailto:mwolfson@nd.edu
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