Quite recently there has been a discussion in class about who is to blame for the economic crisis our country is facing. Many of the students in class adamantly believe that it is our nation’s current Republican administration’s policies on free markets. It is due to the lack of government regulation in the markets that our economy has declined. Those who invested in the market, in stocks, borrowed loans from banks, have lost money or can no longer afford their mortgages on their homes. It appears, for many, that President Bush and his administration is responsible for this terrible economic downfall.
I myself am not so certain to point the culprit for the country’s current situation. I am aware that the differences in party ideologies depend on the amount of government involvement in the markets. Democrats stress the need for government regulation, primarily for social welfare, and Republicans believe in less government intervention. I have heard in class that, because of lack of government regulation in the markets, greed ultimately is the evil that has brought us into an economic downfall. CEO, such as Richard Fuld, has walked away with millions of dollars before his business filed for bankruptcy < www.c-span.org/ – 85k>. The apparent amount Fuld collected from his business was 480million dollars. When asked by congress man, Henry Waxman, if it is fair for him to have received such an amount of money, Fuld had no answer. When asked about what should be done differently to avoid such a catastrophe, Fuld responded that there needs to be more transparency, overview, and reserves…government regulation www.youtube.com/watch?v=BKsixRnJwj4. In shame, Fuld admitted that this is an experience that he wakes up every night thinking about and that it will haunt him for the rest of his life.
So, pursuing “invincible” money can be the root of the economic crisis, backed by the policies of free markets under the Republican administration of President George Bush. Yet, although many blame our current unregulated market system, there are other factors to consider. For example, congress is largely made up of Democrats. Although many argue that the Republicans have run the country for the longest time, Democrats too make decisions and vote on policies that affect the people, not just the Republicans. Since Congress is powerful and made up mostly of Democrats they too are responsible for the crisis. Congressman Artur Davis of Alabama, confessed: “Like a lot of my Democrat colleagues I was too slow to appreciate the recklessness of Fannie and Freddie when in retrospect I should have heeded the concerns raised. I wish my Democrat colleagues would admit that we were wrong.” <email@example.com>. Democrats had also supported the idea of people borrowing money from banks, taking loans, to buy homes, even if individuals were not able to afford the home or qualified for loans. SO in essence the policies of our entire government is what brought us into the economic situation we are in, “The saddest outcome of all this within America – apart from the crippling cost to the nation’s taxpayers – is that the very people the Democrats had intended to help will be the biggest victims: for many years to come banks will demand the most stringent terms for mortgages to the least well off” <firstname.lastname@example.org>.
When people begin to panic, is seems, it is easy to want to blame one specific cause. Yet, when the markets and banks were beginning to not do so well, people began to get scared and therefore not spend money and rather save. Saving money meant goods were not being bought, when goods are not being bought there are less jobs, and hence affecting the economy. It is fair to say then that all causes are intertwined, no one specific person, system, policies, is to blame when all things are interconnected.