It’s an article of faith in the Republican Party that the economy will never prosper until we repeal the tough bank regulations that were enacted in 2010 following the financial crisis. Republicans say American companies can’t grow because banks aren’t lending.
But they are wrong: The Dodd-Frank Act is certainly a ridiculously bloated piece of legislation that ought to be reformed, but it’s not to blame for our slow economic growth. Dodd-Frank is making life difficult for banks, but the truth is, banks are lending plenty of money, and companies are not starved for capital.
The Trump administration and the Republican-led Congress have signaled that they intend to repeal the restrictions that were put in place after the banks nearly brought down the global economy in 2008. Dodd-Frank was intended to prevent the banks from engaging in the same kind of reckless predatory lending that inflated the greatest credit bubble in history at a cost to the economy of more than $10 trillion (not to mention the millions of lives ruined).
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