An Optimistic Outlook for America’s Economy
The effects of the current American financial crisis are worn on the sleeves of nearly every American citizen, despite socio-economic class (contrary to popular belief). From small businesses to large corporations, from the left wing to the right, from farmer to CEO, the dismal economic condition has crept its way into the life of each citizen and into the business of each establishment. The United States of America has surely been put into a severe financial crisis by its partisan leaders and poor business decisions; but by referring to history, making critical changes in economic policy, and promoting the nation’s founding principles, the United States will soon be back on top of the food chain.
In order to assess what should be done to fix the financial crisis, it is imperative to first find out why there is a crisis at all. In 1999, the internet was booming as new online companies entered the market. The economy at this point was very well-off and investors were jumping all over the said new companies. However, the online companies were being valued far beyond their true worth and investors continued to scarf down shares to form what is known as an “economic bubble.” When these companies failed, the bubble burst and all investors’ shares were worthless. Everyone who bought stock in these companies suffered an astronomical loss (Lyons). Because all of these companies failed in the market and investors took such a huge loss, the rest of the stock market suffered. This is because people either could no longer afford to buy stock, or simply were turned off by the events and wished not to invest. In turn, businesses of each size lost the funding that they relied on from investors. This was the beginning of what is now the American financial crisis. Though this was the first huge hit the economy took, it was not the largest by any means. If the poor state of the economy were to be blamed on one event alone, it would...
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