In the event that the unthinkable happens; Joe Biden winning the White House and the Democrats capturing control of Senate, a new report claims the “party of the people” plans to revamp the country’s credit-reporting industry in an effort to eliminate — wait for it — “systemic racism” in the determination and reporting of millions of Americans’ credit scores.
As reported by Politico, Biden plans to create an “equal” and public credit reporting agency that would assign “social credit scores” to tens of millions of Americans. There ya go, America: first, government-run health insurance; then, the federal government handing out “social credit scores” determined, presumably, not only by an individual’s credit history; but by his or her race, as well.
Equifax, Experian, and TransUnion have long “owned” the business of providing credit histories that lenders use to determine potential borrowers’ credit-worthiness. But as Politico reported, Democrat lawmakers and consumer watchdogs warn that a system dominated by three companies “breeds erroneous and harmful financial information about millions of people who may lose access to mortgages and car loans,” which it claims, “amplifies economic disparities and financial discrimination faced by people of color, who may lack credit histories in the first place.”
The three credit reporting giants that collect financial data on 220 million Americans face a major crackdown if Democrats regain power in Washington. Joe Biden and senior lawmakers want a sweeping industry overhaul https://t.co/ZNFZetXfKY
— Zachary Warmbrodt (@Zachary) October 28, 2020
Leading the charge to overhaul the credit-reporting industry is none other than Rep. Maxine Waters (D-CA), chairperson of the House Financial Services Committee (yeah, I know) and Democrat Sen. Sherrod Brown (OH), who is reportedly in line to chair the Senate Banking Committee if Democrats regain control of the Senate. Brown told Politico that the current credit-reporting system “perpetuates systemic racism and economic inequality.”
“The next Congress must enact bold, comprehensive legislation to reform a credit reporting industry that has failed working families and that perpetuates systemic racism and economic inequality. And that includes taking up Joe Biden’s proposal for a public credit registry.”
Ricardo Sánchez, a spokesperson for far-left Rep. Ayanna Pressley (D-MA) — a member of the “Squad,” along with fellow far-leftists Rep. Alexandria Ocasio-Cortez (D-NY), Rep. Ilhan Omar (D-MN), and Rep. Rashida Tlaib (D-MI), who sponsored the legislation, echoed Brown’s comments.
“This pandemic, which has further exposed the deeply entrenched inequities in our economic system, will have consequences that extend far beyond the public health. In this country, your credit score is your reputation, and without necessary reforms, like those included in [Pressley’s] bill, our credit reporting system will continue to needlessly punish hardworking people and families.”
Also on board, of course, is the 1/1,064th Native American, Sen. Elizabeth Warren (D-MA), who spewed her typical venom against the Republican Party.
“Millions of people are out of work, millions more are worried about whether they’re going to be out of work, and Mitch McConnell refused to make a deal that would help people pay the bills. We need to help people bounce back from this crisis and that should include hitting stop on negative credit reporting so that Americans’ credit is protected even though Senate Republicans refuse to act.”
It’s once again time to bust out two of my favorite quotes, which could not be more applicable.
In the words of famed Austrian-British economist Friedrich A. Hayek, best known for his staunch defense of Classical Liberalism — which is not to be confused with the far-left so-called “progressivism” of today’s Democrat Party:
“There is all the difference in the world between treating people equally and making them equal.”
Democrats either don’t understand that truth, disagree with it, or both. While we’re at it, let’s toss in this quote from Irish playwright and political activist George Bernard Shaw.
“A government that robs Peter to pay Paul can always depend on the support of Paul.”
Combine those two truths and there it is; the very essence of the Democrat Party.
Chi Chi Wu, a staff attorney at the National Consumer Law Center, told Politico “it’s time for reform.” “We’ve been complaining about problems with the credit bureaus for decades now,” he or she said. Whether it’s “time for reform,” or not, the big three don’t plan on going down without a fight.
The credit reporting industry is preparing for battle. Despite the heightened scrutiny that followed a massive data breach at Equifax in 2017 — information on 147 million consumers was potentially compromised — the firms have beaten back meaningful reforms. Their representatives in Washington argue that suppressing data would erode trust in the consumer reports and have substantial effects on how lenders dole out credit.
“If you take us out of the system or make it so we’re significantly less functional, the only real result is significantly raising costs,” said Francis Creighton, who represents the firms as president and CEO of the Consumer Data Industry Association. “We provide a service that results in cheaper rates and ease of application.”
Regardless of protestations to the contrary from Waters, Brown, Warren, and other Democrats, opponents of an attempt by Democrats to overhaul the credit-reporting industry say average credit scores have held steady during the pandemic, thanks in part to federal assistance and accommodations made by creditors, Politico noted.
Again, the truth and wisdom of F.A. Hayek cannot be overstated — not just in terms of credit reports and such, but in terms of the Democrat Party’s insidious desire to make everyone in America “equal.” There is all the difference in the world between treating people equally and attempting to make them equal. To do otherwise, would negate the first part of Hayek’s observation, denying equal treatment to those who succeed on their own.
Seems like I’ve seen something about social credit systems somewhere else… lemme think about it for a second… oh, yeah. Here we go:
“From mass surveillance, tracking intelligence, and internet censorship to the use of social credit systems, #AI and big data, @arcanakhalil argues that China’s new normal exposes and expands encroachments on civil liberties.”
Biden and Democrat Party unavailable for comment.
From mass surveillance, tracking intelligence, and internet censorship to the use of social credit systems, #AI and big data, @arcanakhalil argues that China’s new normal exposes and expands encroachments on civil liberties.
Read our latest Analysis.https://t.co/2Wzi5k6ZzN
— The Lowy Institute (@LowyInstitute) November 3, 2020
In “totally” related news, as Donald Trump might say, check out my RedState colleague Nick Arama’s report on Kamala Harris’s bizarre campaign ad — in which the pretend “pragmatic moderate” also confuses the difference between treating people equally and attempting to make them equal.
Democrats. They never learn. Or do they?