Wednesday, July 18, 2012

Government paying the Bills

Today it is said we are coming out of a major economic crisis. Our economic downfall was rather bad but, at least it wasn't as bad as the great depression. In 50 years this will be known as the minor depression because it could even get close to passing the GREAT depression. Today our banks and our people came together to make his huge disaster that formed this crisis we are dealing with now. During the great depression banks and people got together made some bad deals and then the stock market added on and then the bottom fell out of that and a lot of people were free falling. There are many similarities with he two, in how they started and how they were fixed. A major difference though was that in the 1930's the economy had never taken such a big hit and they had no idea what o do and had to try all kinda of things to see if they worked, but now we can look back and see what our grandparents and their parents did and figure things out. In the 30's the depression hit a lot of people really hard and they could get back up they needed help. President Hoover wanted to keep the government out of the economy like it is in the constitution, he thought that the people could fix the economy and that people with money and places to work would help the unemployed and hungry. He eventually saw this wasn't happening so he started trying to make jobs for people by creating a dam and hiring people to build it. He made the federal home loan act that lowered mortgages and the reconstruction finance corporation which helped the banks. All of this was great and seemed like it would helped and everyone would be happy. But a lot of people weren't happy and at the next election FDR was elected. FDR was famous for his New Deal it was attempting to help everyone and get America back on its feet. A lot of people ended up not liking it they said it was unconstitutional and though the government was getting to involved in the economy, but on the other hand people also thought that the government wasn't doing enough so it seems that they were doing just enough if people are arguing both sides they are just greedy and want things to go their way. Now today with our economic crisis the government is trying to get involved again and get people working and get the money flowing again. They are paying big businesses like GM so that they can stay supported and keep people working. They have good intentions in doing this but it also looks to many people as if they are making the rich richer. In my eyes the government getting in the middle can be good but it has it's down sides. A lot of people in the great depression needed some kind of help to get back up and they didn't have anyone to turn to because no one in their area was helping them out so at that point the government needed to get in and help as best they could. Now we need to get people jobs and we always seem to turn to the government and i think it might be because people think it's their job. But really it's not, they are there to set the rules and make people follow the rules. When a economic crisis gets so bad that people can't keep themselves up and the unemployment rate is at a certainer point, I'm not saying i want to set what point that is but that is when the government should get in the middle. People just need to see that the government can't fix everything and we will Gore and create a better economy.       

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