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If the country is facing a financial crisis like the Great depression, how should the government respond?

If the country is facing a financial crisis like the Great depression, how should the government respond? Topic: Essay what caused the great depression
June 16, 2019 / By Frankie
Question: This is an essay question. Please also provide 3 specific policies the government should enact and explain why. Thanks
Best Answer

Best Answers: If the country is facing a financial crisis like the Great depression, how should the government respond?

Darcie Darcie | 7 days ago
Well, the government should put together where the problem is in the first place. The problem does not lie with the amount of money in our economy, there's plenty. The problem lies with the value of that money. Our economy is on the verge of collapse because its foundation, the dollar, is collapsing. Why is it collapsing? Well, that can be traced back to the Iraq War. President Bush wanted to have his war, but didn't want to raise the funds (raise taxes) to pay for it. He had to pay for it somehow, so how did he? Well, he borrowed the money from other countries. And they were willing to let him have it, but at a rather high interest rate. Bush didn't care, the Iraq War was supposed to be over in 3-6 months anyway. Only it wasn't. We are now nearing the end of the 5th year, well past the 6 months Bush had envisioned. So Bush kept having to go back to those other countries for more and more money. But as he borrowed more, it started concerning the other countries, who began to worry if we could actually pay back any of these loans. They were beginning to wonder if we could pay back, considering how much we were borrowing. They were still willing to lend us money, but they wanted to charge more in interest to take the risk. Bush had committed himself to the war, so he decided to take it at the extremely high interest rate. This only served to raise the National Debt even higher. The National Debt is what we owe to other countries. And with that Debt going so high, investors also began wondering if we could pay back any loans, and they lost confidence in our dollar. They quit investing in it, and in fact started pulling their investment capital away from the dolllar, which caused it to lose value. This had far-reaching consequences. One, oil is measured in dollars. So when the dollar lost value, it required more of them to equal the same barrel of oil, and so the price of oil and gas went way up. Businesses also had to use more dollars to make the same products, and so they had to charge more at the store to make up for it. They also had to cut expenses, and the biggest expense they cut was payroll; in other words, they laid off employees. Well, those employees are also consumers. Now that they didn't have a job and the money in their savings lost much of its value, they quit buying products made by businesses. Middle Class spending is the biggest driver of our economy, so when they stopped buying our economy took a major hit. Businesses quit making a profit. Some even went into the red and lost money. And investors saw that and didn't want to invest in companies barely making a profit, and definitely not in those losing money. So there is the problem with Wall Street and why no one is investing anymore. And those employees are also bank lendees. When they lost their jobs and their savings, they quit paying back their home loans, their student loans, car loans, etc. And so there is the problem with the banks and mortgage markets. And finally, the auto industry. The American auto industry focused mainly on SUVs, because that is what Americans like to buy. But when gas went up because of the oil prices, we could no longer afford to keep running SUVs. We couldn't afford the gas. So we quit buying American cars, and the auto industry ran into serious problems right away. And all the lost money for businesses only led to more layoffs, so the problems only get worse as it goes along. They are feeding on themselves. To fix the problem, we have to restore the value of the dollar. Oil prices will drop, businesses can make products cheaper and so charge less at the store, they can also rehire their laid-off employees, and the Middle Class can start spending again. To fix the dollar, we must: 1) Leave the Iraq War, which is the main reason the dollar lost its value in the first place. We cannot afford the Iraq War. 2) Raise taxes, and move that money to paying down the National Debt. That will convince other nations and investors to start trusting the dollar again, and that will encourage investment in the dollar. 3) All tax cuts must go to the Middle Class, so they have money to spend. When they buy products, the businesses will then make a profit and that will encourage investors to invest in them again. With money coming in from both customers and investors, the businesses can then rehire their laid-off employees. 4) Once the dollar is restored, we must cut taxes to make sure the businesses can stay afloat and the Middle Class can keep spending. We must also cut all spending, which includes wars but also includes things like Welfare and Medicare and so on. All spending must be cut, or we will only recreate the situation that got us into this economic mess.
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Darcie Originally Answered: If the country is facing a financial crisis like the Great depression, how should the government respond?
Well, the government should put together where the problem is in the first place. The problem does not lie with the amount of money in our economy, there's plenty. The problem lies with the value of that money. Our economy is on the verge of collapse because its foundation, the dollar, is collapsing. Why is it collapsing? Well, that can be traced back to the Iraq War. President Bush wanted to have his war, but didn't want to raise the funds (raise taxes) to pay for it. He had to pay for it somehow, so how did he? Well, he borrowed the money from other countries. And they were willing to let him have it, but at a rather high interest rate. Bush didn't care, the Iraq War was supposed to be over in 3-6 months anyway. Only it wasn't. We are now nearing the end of the 5th year, well past the 6 months Bush had envisioned. So Bush kept having to go back to those other countries for more and more money. But as he borrowed more, it started concerning the other countries, who began to worry if we could actually pay back any of these loans. They were beginning to wonder if we could pay back, considering how much we were borrowing. They were still willing to lend us money, but they wanted to charge more in interest to take the risk. Bush had committed himself to the war, so he decided to take it at the extremely high interest rate. This only served to raise the National Debt even higher. The National Debt is what we owe to other countries. And with that Debt going so high, investors also began wondering if we could pay back any loans, and they lost confidence in our dollar. They quit investing in it, and in fact started pulling their investment capital away from the dolllar, which caused it to lose value. This had far-reaching consequences. One, oil is measured in dollars. So when the dollar lost value, it required more of them to equal the same barrel of oil, and so the price of oil and gas went way up. Businesses also had to use more dollars to make the same products, and so they had to charge more at the store to make up for it. They also had to cut expenses, and the biggest expense they cut was payroll; in other words, they laid off employees. Well, those employees are also consumers. Now that they didn't have a job and the money in their savings lost much of its value, they quit buying products made by businesses. Middle Class spending is the biggest driver of our economy, so when they stopped buying our economy took a major hit. Businesses quit making a profit. Some even went into the red and lost money. And investors saw that and didn't want to invest in companies barely making a profit, and definitely not in those losing money. So there is the problem with Wall Street and why no one is investing anymore. And those employees are also bank lendees. When they lost their jobs and their savings, they quit paying back their home loans, their student loans, car loans, etc. And so there is the problem with the banks and mortgage markets. And finally, the auto industry. The American auto industry focused mainly on SUVs, because that is what Americans like to buy. But when gas went up because of the oil prices, we could no longer afford to keep running SUVs. We couldn't afford the gas. So we quit buying American cars, and the auto industry ran into serious problems right away. And all the lost money for businesses only led to more layoffs, so the problems only get worse as it goes along. They are feeding on themselves. To fix the problem, we have to restore the value of the dollar. Oil prices will drop, businesses can make products cheaper and so charge less at the store, they can also rehire their laid-off employees, and the Middle Class can start spending again. To fix the dollar, we must: 1) Leave the Iraq War, which is the main reason the dollar lost its value in the first place. We cannot afford the Iraq War. 2) Raise taxes, and move that money to paying down the National Debt. That will convince other nations and investors to start trusting the dollar again, and that will encourage investment in the dollar. 3) All tax cuts must go to the Middle Class, so they have money to spend. When they buy products, the businesses will then make a profit and that will encourage investors to invest in them again. With money coming in from both customers and investors, the businesses can then rehire their laid-off employees. 4) Once the dollar is restored, we must cut taxes to make sure the businesses can stay afloat and the Middle Class can keep spending. We must also cut all spending, which includes wars but also includes things like Welfare and Medicare and so on. All spending must be cut, or we will only recreate the situation that got us into this economic mess.

Brandi Brandi
Well the last thing the gov't should do is borrow hundreds of billions more to stimulate the economy.Number one it just creates more interest on the debt for which we get nothing. Public works jobs like infrastrucre spending only creates a handfull of jobs and does little to help the overall economy. Most of the money goes to paper shuffling anyway. Plus it would take years to draw up plans to spend the money..Spending billions on green energy is a waste also because there's not a big enough market for the products. What I would do if I was President is order a 15% cutback of all federal employees.Every dept. has at least this many people that are slackers, non-productive and trouble makers. Secondly,I would put a freeze on all federal spending for at least two years. I would also stop the practice of giving government employees a year end bonus. They make enough through the year and have great benefit packages.I would then consolidate all duplicate programs and put programs under the dept.they belong in.This would get more money to the intended purpose. I would also stop the practice of giving welfare to women that have illegitimate children and instead put the money into education and group homes if they have no where to stay. I would also bring back the draft for deadbeat dads who are seriously behind on child support.This would cut down on the rampant wreckless fatherhood we have going on today. Kids deserve to live in a two parent family if at all possible. In the short term on the economy, I would have a 6 month FICA tax holiday to put more money into consumer's hands. There's a variety of ways to pay for this.It would give people some relief from their bills and give them some spending money. The overall problem with the US and world right now is there's more leeches than hosts and the government is having to borrow to make up the difference. Also if we produced more of our own conventional energy,we wouldn't have so much money leaving the country.
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Alease Alease
The dollar is not down., It has been up Euros latest (Nov 27) 0.779545 lowest (Jul 15) 0.628022 highest (Oct 27) 0.803471 South Korean Wons latest (Nov 27) 1477.3 lowest (Jul 10) 998.2 highest (Nov 24) 1507.9 So the doller is not the problem. It is jobs or the lack of jobs. Why have we lost so many in the work force. One word Globalism. Globalism is the ideology that advocates the liquidation of nations. Its opposite is nationalism. Globalization, on the other hand, is not an ideology at all. Ultimately, it is just the growth of communications and trade, and it has been happening since 1492.Globalism is a deliberate political choice, no more inevitable than socialism. The problem with globalism is not free markets but free-market extremism, a peculiar kind of right-wing Jacobinism that has no place in authentic conservatism. In the U.S, this means taking free trade beyond its common-sense limit of reciprocity with friendly nations and opening our markets to nations, like Japan, which keep their markets closed to us, and China, which nakedly proclaim their military hostility to us. The principles upon which Western culture rests and upon which America was built are under attack by these slow acting but deadly forces.grinding down the will of the West to maintain itself. The ideas of individual sovereignty and responsibility, natural rights, and objective truth have been derided by the left to the point that many of our young people reject them, if, indeed, they are even aware of them as the basis for our culture.
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Tristin Tristin
1. Give people jobs like building more wind turbines. 2. Make foreclosure proceeding more fair like don't kick people out in nine months instead of three. 3. WHY IN HELL WALL STREET EXECUTIVE ARE GETTING MAJOR BONUSES STILL IN THE MILLIONS. OVER 40 THOUSAND STOCK BROKERS AND FINANCIAL REPS ARE LAID OFF. CONGRESS DEMAND MORE ACCOUNTABILITY BECAUSE THE GOVERNMENT NOW OWN A LOT OF STOCK IN THESE TROUBLED FINANCIAL COMPANIES. USE THE BONUSES TO US TAXPAYERS BACK.
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Reilly Reilly
we should. 1.end the war. 2.reduce regulation. 3.lower the interest rate. 4.create a flat tax and eliminate irs. 5.we should privative major sectors of government. like in indiana. 6.privatize things such as meals and janitorial services inside government. 7.leave nafta and the UN 8.quit all printing of money 9. control inflation.. possibly deflation.
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Reilly Originally Answered: Should the USA government install CCTV and microphones in every home in the country?
Two-way mirrors!?!? Is that a mirror on both sides!? So ... the government would be able to watch themselves while I get ready in the morning? What good would that do? http://en.wikipedia.org/wiki/One-way_mir... But, no, they should just place an soldier in everyone's home. Give them a long red coat too! Unfortunately, most of the soldiers who volunteer their lives for this country still believe in that freedom thing. Psh!!!

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