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Historically Illustrating the Shift to Neoliberalism in the U.S. Home Mortgage Market

City and Metropolitan Planning Department, University of Utah, Salt Lake City, UT 60608, USA
Societies 2019, 9(1), 6; https://doi.org/10.3390/soc9010006
Received: 8 October 2018 / Revised: 10 January 2019 / Accepted: 12 January 2019 / Published: 18 January 2019
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Abstract

This article takes a long view of the U.S. housing market; from its inception as locally owned and operated Building Societies, through one of the first major U.S. housing crises in the early 1930s, as well as through the prosperous and surprisingly stable post-WWII era the so-called “Long Boom” during Keynesianism. As labor shortages became more severe, accompanied by stagflation and the simultaneous urban, fiscal, and oil crises of the late 60s and early 70s, key sectors of the U.S. economy rallied to dismantle established Keynesian policies. While the new policies associated with laissez–faire economic liberalism certainly aided in the mobility of capital, the overall economy as a result of this neoliberal turn became increasingly unstable and inequitable. This article seeks to add knowledge to the neoliberalism theory. The author concludes, based on a historical case study of the Savings and Loans industry, that neoliberalism was not a deterministic overthrow of neoliberal ideologues but a haphazard response to the contradictions of Keynesian logic. It is only from a historical approach that we may be able to understand the current housing crisis, foster policy innovation, and allow for institutional change within the U.S. mortgage market sector. View Full-Text
Keywords: banking; financial institutions; industry; mortgages banking; financial institutions; industry; mortgages
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This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited (CC BY 4.0).
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García, I. Historically Illustrating the Shift to Neoliberalism in the U.S. Home Mortgage Market. Societies 2019, 9, 6.

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