Government And The Government Of The United States Government

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How many people are involved in a government decision to help a large bank? On the surface, it is a simple answer. Some might think just the banks and the government because that is who made the decision, and the banks are the ones that were helped by that decision. The United States government is comprised of leaders elected by the citizens. The United States government also relies on the taxes generated by these same citizens which help fund government programs, the military and many other things. A government bailout is “a situation in which the government pays or lends money to save a company or industry from failing” (Cambridge Business English Dictionary). The governments decisions to bail out banks in 2008 re-energized corporate…show more content…
Debt this high drove all crediting to collapse because people could not make payments on their loans, due to the fact that they simply did not have the income to pay. This then created instability within the banks because the revenue necessary to continue was no longer there. All of things added together equated to the largest market crash since the great depression and governments intervention. Government help was seen as the only way to avoid a total economic collapse in the United States, although many thought it could result in a worldwide economic recession. On September 18, 2008 the 700 dollar bailout plan was proposed to congress. Fed Chairman Ben Bernake is quoted telling congress, “If we don’t do this, we may not have an economy on Monday” (The Housing Market Crash of 2007, 2011). This is when it became apparent that the government had a stake in this situation. When people begin questioning whether the United States economy will still exist, the government then has a huge role in the survival of not just the economy, but the entire country. The government is in a situation where it must decide how to protect the American economy, the citizens, the businesses, and the future of the United States of America. On October 3, 2008 congress passed “Emergency Economic Stablization Act” (H.R. 1424- 110th Congress, 2008) which led to the lending of 700 billion dollars’ to
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