Do you think they are certain economic crises that require government intervention? Ex: Great Depresion, Auto Industry failure, etc.) Why or Why not?
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The bail out of the auto industry cured only the effects of the 2008-2010 Great Recession. It did not address the root cause of the economic problem.
The root cause is greed and the government's Keynesian tendencies.
The Great Recession is bound to return in the coming years as the government continuous to weld its bailout card. Private companies will become complacent and will not heed the early signs of economic downturn because the government will always be there to bail them out.
Woods (2010) argued this first scenario: "Consider this situation when the public increases its savings. Since banks now have more funds to lend (namely, the ...
The solution discusses economic crises and government intervention.