Free Market Focus: Key Questions About Too Big to Fail

If you are having trouble viewing this message click here to view it online.

July 3, 2013     |    Discover more at Heritage's Enterprise and Free Markets webpage

Too Big to Fail: Some Questions for the House Financial Services Committee Tomorrow, the House Finance Committee, chaired by Representative Jeb Hensarling (R–TX), is holding a hearing on one of the most damaging legacies of the 2008 financial crisis: the “too big to fail” doctrine. Simply put, the doctrine holds that some firms are so essential to the functioning of the U.S. financial system—and their sudden failure so disruptive to the economy—that policymakers must keep them from failing, bailing them out if necessary. Four witnesses are scheduled to discuss the issue tomorrow: Thomas Hoenig, vice chairman of the Federal Deposit Insurance Corporation (FDIC); Richard Fisher, president of the Federal Reserve Bank of Dallas; Jeffrey Lacker, president of the Federal Reserve Bank of Richmond; and Sheila Bair, formerly chair of the FDIC. FIND OUT MORE >>

What is Minimum Wage: Its History and Effects on the Economy Supporters of the minimum wage intend it to lift low-income families out of poverty. Unfortunately, despite these good intentions, the minimum wage has proved ineffective at doing so. Indeed, it often holds back many of the workers its proponents want to help. Higher minimum wages both reduce overall employment and encourage relatively affluent workers to enter the labor force. Minimum wage increases often lead to employers replacing disadvantaged adults who need a job with suburban teenagers who do not. LEARN MORE ABOUT THE MINIMUM WAGE >>

Tales of the Red Tape: The USDA Rabbit Police There’s no good way to deliver this disturbing bit of news except to come right out with it: Marty the Magician and others in the business of pulling a rabbit from a hat are under strict orders from the federal government to develop a “contingency plan” for handling their critters in the event of a natural or man-made disaster. And, no, a recipe for Hasenpfeffer won’t suffice. FIND OUT ABOUT THIS HARE-BRAINED REGULATION >>

More From Heritage National Employee Freedom Week: Informing Workers of Their Rights Time to Upgrade the African Growth and Opportunity Act Cut Government Spending to Help the Economy? Majority Say Yes Red Tape Rising: Regulation in Obama's First Term

About The Heritage Foundation Founded in 1973, The Heritage Foundation is the nation’s most broadly supported public policy organization. Heritage created the Center for Legal and Judicial Studies in 2001 to educate government officials, the media and the public about the Constitution, legal principles and how they affect public policy.

Update Preferences or Unsubscribe