In a world of Bidenomics outrages — big-government socialism, taxing success, unelected regulatory bureaucrats destroying an entire industry, and where the diversity, equity, and inclusion movement and redistribution reign over incentives to promote opportunity and growth — we have a new outrage.  

Hard-working people, and I’m talking typical middle-class blue-collar type families who play by the rules and save their money to create a nest egg to buy a house — i.e., the American dream — are going to be penalized by the Biden administration. It’s another example of President Biden’s war on success.  

The administration is going to hike payments for good-credit homebuyers in order to subsidize high-risk mortgages. That’s right.  

New federal rules from the Federal Housing Finance Agency — in other words, Fannie Mae and Freddie Mac, which control 60 percent of the housing mortgage market — reportedly go into place May 1, though there are indications it could happen later or even not at all. If you have improved your credit score to 680 or higher, or if you have made a down payment of 15-20 percent, you will be penalized with a higher mortgage interest rate and new large fees on the transaction.  

This is an outrage. This is an attack on the American dream.  

Everybody should try to put 20 percent down. It’s a commitment to the future. It’s a matter of financial responsibility. It should not be penalized. It should be rewarded.  

If you’re recovering from Covid, or even going way back if you’re recovering from the financial meltdown of 2008 and 2009, and you got your FICO credit score up to at least 680, you should be rewarded for your effort.  

What Mr. Biden is doing is creating a responsibility tax.  

Again, he is attacking middle-class people who played by the rules, worked hard, who saved to invest in a home — really the most cherished aspect of American life. Your own home.  

The other side of the coin is that people who have not achieved a good credit score or made a good down payment will be rewarded with lower mortgage rates and fees. Look, everybody wants as many people as possible to own a home, to share in the American dream, but this is not the way to do it.  

Fannie Mae and Freddie Mac had to be bailed out by taxpayers 15 years ago to the tune of $191 billion. Why? Because these government-backed agencies put their seal of approval and government backing behind mortgages for people who could not carry the mortgages financially.  

When interest rates went up then, just like they’ve gone up now, it made matters worse for people who either had no equity in their home or maybe 5 percent, as well as those who did not have steady incomes or a savings nest egg. Many defaulted on their mortgages, which caused Fannie and Freddie to lose money.  

Why in the world would any administration repeat those mistakes? Let me reiterate: Fannie and Freddie had a $191 billion taxpayer bailout. Do we seriously believe we want to repeat that? Or, why put a burden on families who can’t afford it? At least, not yet. Government subsidies are no substitute for a savings nest egg and a surefire income statement history.  

This is left-wing socialist ideology; that’s all it is. But this is the socialist fashion that we see everywhere we look. Not just Mr. Biden or his alter-ego, the socialist senator, Bernie Sanders, but look around the entire G7.  

I don’t see one single proponent of economic growth and prosperity, but I do see a whole bunch of left-wingers who are trying to substitute government action for private investment — and are, of course, failing. There is no growth right now among the G7, but there is a lot of inflation because of all this government action. 

We should be outraged at this mortgage story, but we should be equally outraged at how all these governments are going in the wrong direction. Where are the capitalists?  

Save America. Cut the budget. Grow the economy. Wait for the grownups to return.  

From Mr. Kudlow’s broadcast on Fox Business News.

Correction: May 1 is possibly the date new federal rules from the Federal Housing Finance Agency go into effect. The timing was misstated in an earlier version.