Government Bailouts

Topics: President of the United States, Bailout, Subprime mortgage crisis Pages: 4 (1652 words) Published: September 12, 2010

As individuals, Americans may desire to come to the aide of those in need out of the goodness of their hearts, but they are not legally obligated to do so. Traditionally, under American law, no general duty to rescue those in financial trouble is imposed on us. There may be a morale duty to rescue those in trouble, but the law leaves that to the individual and their conscience. So why are so many citizens looking to the government for help with today’s economic situation? Only people can have a responsibility and the government is not a person. It gives the wrong impression of what government really is and sends people looking for assistance in the wrong direction. I believe that Americans are divided as to whether or not the Government has an economic responsibility to bail out those corporations in financial trouble. Government is an instrumentality; it is a means that we use to achieve our goals and objectives. We need to make sure that we use Government effectively, for the right reasons and not become totally dependent upon it every time we get into trouble. Will the bail out plans truly get our economy back on its feet? The question we should ask today is not whether or not our government works, but whether it works well.

Most Americans understand that the economy isn't doing well, but there's confusion about how it got to this point, even on Wall Street. In 2007, the economy was extremely robust. Less than 12 months later, the United States is facing a plunging stock market, record unemployment and total credit collapse. How, specifically did this happen? Well, some blame the problem on the housing market. With the interest rate lowered, Americans were in a rush to purchase new homes. Low interest rates created a rush to buy housing creating a rush to generate business. Some fell under the spell of mortgage brokers. Despite knowing in their hearts that there is no such thing as free money, Americans accepted the assurance...
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