I'm not exactly sure who Phil Gramm was talking about recently when he noted that 'we have become a nation of whiners', referring to folks whining about the economy.  I do know for certain whom he wasn't talking about.  The people Phil Gramm wasn't referring to are those who have watched the value of their assets (in many cases these are retirement funds), which represent years of struggle and adherence to the rules, sacrificed at the altar of self-congratulatory policies.

 

The feel-good, "socially-just" policies I refer to, such as the Community Reinvestment Act, may result in good sound bites such as a small percentage increase in home ownership for particular demographic groups.  Making risky loans, in the name of fairness, to those who cannot afford them comes with costs, as do all economic transactions.  These costs often result in a vast imbalance when compared to the supposed benefits these policies espouse.  This is especially true considering the perspective of those who have followed the rules.  This cost-benefit imbalance can result in severe economic hardship, scarce credit and a significant decline of retirement assets.

 

Too often costs are not considered when it comes to government responses to conceived problems such as a lack of diverse representation in home ownership.  More cynically, these costs are ignored in favor of short-term, politically rewarding benefits.  The realization of punishing costs to those who were responsible for the policies is expected, some say deserved.  Far more difficult to swallow is the punishment faced by those who have stayed within a reasonable financial framework.

 

No, the people Gramm referred to as whiners are not the aforementioned who work hard, make sound financial decisions and play by the rules.  But if anyone has a right to gripe at this juncture, it is they.