The Pros And Cons Of The 2008 Great Recession

The 2008 Great Recession reached far past just the United States of America, it was so much bigger than we have ever given it credit for. The recession was simply, absolutely, ginormous, it was world wide, utterly global. Because of the great size of the recession, the United States of America’s federal government knew that they had to act fast to find a solution. But the real question is, was the United States of America’s federal government able to find it? The answer: No, the United States of America’s federal government was not able to find the solution they were desperately searching for. Instead, they put the burden of bailouts on the common taxpayer, leading to nationwide outrage. But the United States of America’s federal government

The Lehman brothers are just a famous example of this occurrence. This process of bankruptcy has happened countless times, unfortunately to some of the United States of America’s largest banks. But this process of 25 banks closing in just 2008 alone could have been prevented. Lower investment rates would have been directly related to cheaper, and more efficient money lending and borrowing for both businesses and the common person. Overall, there would have been much more economic pursuit and venture within the United States of America. Companies, and people, that were struggling, and on the verge of collapsing like the Lehman Brothers, would have been able to remortgage and renew debt at record low rates. Payments for companies and people would have become exponentially more manageable, and less would have had to file for bankruptcy. The common person would also have had the new ability to take out more loans, at a much lower risk of bankruptcy. Putting it most simply, lowering investment rates would have become a safety net for both the common individual and businesses alike. Again, many banks and other companies filed for bankruptcy, but those banks and companies had to be bailed out somehow. The burden of bailing out other companies and banks was put onto the shoulders of the common taxpayer. “The Treasury Department injected $412 billion into banks, carmakers and other struggling companies through the Troubled Asset Relief Program, or TARP. As of the end of last year, it had collected everything it had paid out in bailout funds and then some, leaving the government with a profit of $12 billion.” This act, rightfully, angered the entirety of the United States of America’s public. “a social contract exists between US citizens and corporate America”. Large corporations undoubtedly have power. Citizens vest this power