Generation "B" for Blame Somebody Else
Tuesday March 02, 2010 10:11 PM  I saw a debate spring up on Facebook over this story More states look to ban credit checks on job seekers and some of the comments demonstrate exactly what is wrong with our society. There is a mentality of irresponsibility that has infected many in our generation and causes them to blame all their short comings on society or some evil corporate cabal. Instead of promoting personal responsibility, many of the comments were about how evil companies are and how unfair the system is.
I never understood the connection between corporate corruption and bad credit. No matter how corrupt some in corporate America are, you either pay up on the debt you owe or you don't. Many in the liberal community think that the system is designed for you to fail but once again, what does this have to do with your spending habits? In fairness to the other side let's explore that.
There has been much debate about who is to blame for the financial crash in this country and the truth is, many people. It began in the 1990's when Congress made it harder to do business if they did not past a CRA exam which was based on the Community Reinvestment Act of 1977. The point was to make sure that banks were offering the poor a shot at home ownership. Fannie Mae encouraged banks to make these risky loans and then offered to buy them and package them into securities. This is where the Gramm-Leech Bliley Act comes into play. In 1999 Bill Clinton signed the Gramm-Leech-Bliley Act which was bi-partisan and opened the doors for banks to merge with other securities institutions. This set the stage for what is often referred to as "predatory lending."
Some people blinded by the thought of an inexpensive loan towards a home that will shoot up in value didn't properly take into account that what goes up must come down and down it came along with the entire U.S. Economy. This is the sort of scenario that speaks to ignorance and naivety as opposed to a blatant attempt to skirt paying bills. Having a default on a mortgage can in one shot wreck your credit. So if you are one of these people you in the very least are guilty of not properly understanding the loans you were agreeing to.
This is an example of where your credit history isn't necessarily a reflection of your character as a person but keep in mind, the vast majority of American have not defaulted on their loans. Putting that aside or some other catastrophe like a medical emergency that drains the budget most people who are responsible with money don't end up getting buried by one event because their mentality keeps their spending habits comfortably inside their income.
In today's competitive job market more employers than ever are using your credit score as a measure of your qualifications for a job. Since it is easy to fake references it is harder for businesses to vet candidate for employment. Your credit score is one way they can measure how you manage your life. When Bill Clinton was caught with cigars, a stained dress and an intern many said that there was no connection between his ability to do his job effectively and his character as a man. The evidence suggests that most people especially employers feel differently. There is a valid reason why they ask if you have ever been convicted of a Felony on a job application. How you conduct your life is who you are.
Actions define who you are and if you conduct your life in an irresponsible way then it is reasonable that there be consequences. Society has to grow up and stop blaming everyone else for their choices. Financial prosperity comes slow and if you insist on instant gratification at an early age you risk not having the funds to pay the bills. President Obama can hope all he wants and so can his followers but there will be no change in results until all Americans change their attitudes and take responsibility for their own lives and credit.
Stay Sharp!
RELATED:
More states look to ban credit checks on job seekers
The truth about credit card debt
Profile: Gramm-Leach-Bliley Act
Democrats on path to repeat housing disaster 
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