The 2008 financial crisis devastated the American economy, destroying millions of jobs and wiping out trillions in household wealth. In response, Congress passed the Dodd-Frank Wall Street Reform and Consumer Protection Act, the most comprehensive financial reforms since the New Deal.
Opponents in Congress called the law “legislative malpractice.” They argued the legislation:
● “will destroy hundreds of thousands of jobs” (Representative Tom Price)
● “will impose new costs and onerous new regulations on small businesses” (Senator Christopher Bond)
● “will restrict credit availability” (Representative Frank Lucas)
● “seriously undermines the competitiveness of the American economy” (Senator Richard Shelby)
● “actually undermines the basic goal, which is to keep the system sound” (Senator Judd Gregg)
● “fundamentally assaults the economic liberty of the American citizen” (Representative Jeb Hensarling)
On the 15th anniversary of Dodd-Frank’s enactment, these fears have not materialized. Instead of leading to an economic catastrophe, the Dodd-Frank law ended taxpayer-funded bailouts, stabilized financial markets, supported the creation of 21.9 million jobs during the longest economic expansion in American history, expanded access to affordable credit for families and businesses, and reformed the financial industry while maintaining America’s competitiveness.
