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Old 10-29-2018, 08:43 AM
septimus's Avatar
septimus is offline
Join Date: Dec 2009
Location: The Land of Smiles
Posts: 19,557
I'm not averse to the government encouraging or discouraging specific sectors. Want to encourage domestic clothes makers? Put a tariff on clothing imports. Want to discourage gas-guzzling cars? Increase the gas tax. Encourage home ownership? Have a mortgage tax deduction. Encourage major advances in system and materials design? Take bids for a trillion-dollar fighter jet.

But forcing banks to set interest rates unrelated to their risk doesn't seem like a proper market-based approach to pursue such objectives.