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Reasons For The Financial Crisis

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Economic Crisis There are many reasons for the financial crisis. Everyone, at one time or another, had to look through the want ads for employment. Public and private business demonstrate to be hiring, however, the unemployment rate has been reported at an all-time high. In addition, most employers are looking for a minimum of an associate degree. What is the relationship between these three topics and how does it affect the economy? Scarce Resources For one, the government provides a limited resources to the public. These scarce resources include providing EMS, Police, Fire Department and other emergency personnel. When the economy is in a deficit, these services are affect and result in reduction in emergency personnel. The Department of Education use to fund school books to every student. However, when there is a financial crisis, teachers are eliminated and students need to share books. Public Hospitals face the need to cut back on staffing as well. The rise in medication and doctor’s visit are then passed on to the Health Insurance. These expenses are then taxed on to the employer and shared deductions from the employees. Do we sacrifice safety or do we limit the resources towards education and health benefits? The government can then provide a tax break or a stimulus packet that will allow for more spending and putting money back into the economy. "If an increase in spending or a tax cut is financed through a decrease in other spending or an increase in

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