Help Me Understand #1

One of the key devices I use as a consultant is something I call the “Help me understand” question. I use this when it seems that there is an apparent contradiction between two things which are said or behaviors of a person.

The structure is this: Help me understand how A (one behavior or statement) is in alignment with B (the other behavior or statement)?

Sometimes this leads me to some very good insight and a much deeper understanding of the issues. Very often, I am convinced that A and B are, in fact, in alignment and that what was lacking was my deeper understanding. Other times however, the person I am working with is unable to reconcile the dissonance and even adjusts their behavior or statement accordingly. Other times they make no adjustment and go on living a contradiction.

In any case, I have one these situation that is directed at my big government friends.

Today, I received an email about a story at 2:28pm from the Huffington Post (one of the two political newsletters to which I subscribe, the other is Glen Beck’s newsletter (I figure between this two lies some semblance of the truth)) which states, “One key driver in the rise in home sales and home prices was the federal government's $8,000 tax credit for first-time home buyers and $6,500 tax credit for those changing residences, both of which expired in April.” Let’s call this one statement A.

Ten minutes later at 2:38pm, I received a second email from the Huffington post featuring a column from Robert Kuttner which states, “Here is a fable that is making the rounds. It is a collection of half-truths and outright lies: The financial meltdown was the result of too many people pursuing the American Dream of home ownership. People who couldn't really afford to be homeowners became speculators. Government added to the damage with cheap mortgages, misguided laws such as the Community Reinvestment Act, and overgrown government-sponsored agencies like Fannie Mae and Freddie Mac.” Let’s call this statement B.

So my statist friends, help me understand how A is in alignment with B? A states that the federal government tax credits influenced the buying of homes, while B states the government laws did not influence the buying of homes.

Which is it? I do not believe it can be both.