Alfredo Ortiz writes for Fox News that if Ocasio-Cortez had her way and lenders were held liable for their borrowers’ business decisions, access to credit would dry up, undermining entrepreneurship and economic growth.
Rep. Alexandria Ocasio-Cortez, D-N.Y., exposed her economic ignorance again this week when she argued that bankers should be liable for borrowers’ mistakes.
During Capitol Hill testimony from Wells Fargo CEO Timothy Sloan, Ocasio-Cortez contended that if in the event of an oil spill on the Dakota Access Pipeline, which Wells Fargo helped finance, the bank should be held responsible
The socialist congresswoman misunderstands the role of credit in the economy. Credit exists to match capital to its most highly valued use. For entrepreneurs and small businesses, this means matching capital in search of ideas with ideas in search of capital. The United States’ deep and liquid capital markets are a major reason for its economic productivity and success.