Isn't This Stupid?

Hey, I'm doing some research on freedom of contract, and specifically the limits of the doctrine. I'm reading about the Community Reinvestment Act ("CRA"), which I found interesting:

Essentially, the CRA was enacted in 1977 to combat "discrimination" because commercial banks disproportionately distributed loans to high-income earners, which consisted mostly of white people. Of course, disparities do not imply discrimination, so the CRA was enacted under a false pretense. Nevertheless, it was aimed at rectifying the apparent inequity.

The CRA accomplished its objective, but not without serious criticism. Under the CRA, banks are incentivized to lend out money to poor people who would otherwise not be eligible specifically because most of them cannot pay the money back, which results in "predatory lending." Of course, the issue of predatory lending has led some to advocate for the enactment of various usury laws in order to regulate interest rates. Without usury laws, the subprime mortgage crisis would happen again because of the distortions that the CRA creates. Of course, such laws would centralize banks and make them almost entirely rely on government, which would create problems in itself. Alternatively, the crisis would not have happened had the market been able to operate freely and determine for itself who deserves a loan and at what interest rate.

I found this all interesting because it shows how one regulation leads to more regulations to rectify the problems that are created by the original regulation. Government sucks.

That's government. With the best of intentions they "solve" 1 problem while creating 10 others, which then of course requires... more government to "solve" those problems, and so on. It's a never ending cycle.

As you said, government sucks.