Discussion assignments will be graded based upon the criteria and rubric specified in the Syllabus.

For this Discussion Question, complete the following.

1.  Read the attached opinion piece

(https://ari.aynrand.org/free-markets-didnt-create-the-great-recession/)
where the author indicates that the Great Recession of 2009 was not caused by the Free Market, but was instead caused by US Government policies.   

2. Locate two JOURNAL articles which discuss this topic further. You need to focus on the Abstract, Introduction, Results, and Conclusion. For our purposes, you are not expected to fully understand the Data and Methodology.  

3. Summarize these journal articles. Please use your own words. No copy-and-paste. Cite your sources.

1st student response  :(Siddharth Konduru):

 

Who should be blamed for the 2009 great rescission? (Mansfield E.D, 2019) talks about the survey that was conducted in 2008 to determine who to be blamed if a rescission happened. The nominees for the list are as follows:

• President of the United States (George W. Bush)
• Democrats
• Republicans
• Mortgage lenders
• Defaulting borrowers
• Federal Reserve Board
• Trade policies

The result of the survey indicated that the president US and the US Government policies were to be blamed that failed to do what’s needed to control banks and monetary establishments. The study conducted by (Mansfield E.D, 2019) emphasizes the fact that trade policies, foreign competition, or employment outsourcing are not to be blamed for the case of the rescission. The author concludes by identifying main sources for an average American to become progressively unfriendly to trade and foreign transactions.

(Behrouz Tabrizi, 2011) focuses on the aftermath of the great rescission and how some social groups in the society would suffer most as a result of rescission. The author attempts to further elaborate on the domino effect of the 2009 recession such as the ‘deregulation of the banks’ and ‘crash of the housing industry’ that had a great impact on the working-class groups in the society with the increased unemployment rate.

References:

Behrouz Tabrizi. (2011). The Flip Side of the U.S. Economic Recession 2007-09. International Journal of Economics and Finance Studies, 3(1).

Mansfield, E. D., Mutz, D. C., & Brackbill, D. (2019). Effects of the Great Recession on American Attitudes Toward Trade. British Journal of Political Science, 49(1), 37–58.

2nd Student Response (Pujitha Thummala) :

 

Government obstruction in recessions was not very great as there was more vulnerability and flimsiness of projects directed by the legislatures before. The first major disaster of the 19th century occurred in October 1843 when the government imposed a tariff on iron. In the course of the ensuing months, the government attempted to cut off imports of iron from foreign sources and to force foreign iron mills to sell their products. This led to increased demand for iron as well as a decline in domestic iron production. As a result of this, there were increased difficulties in getting iron produced and used, including the problem of transportation. The economic crisis of 1980s was not a very important cause of recession, because the governments of the countries in the world were not very powerful. There was a lack of willingness of the governments to make decisions and to intervene in economies. There was the lack of willingness to spend money. They were in an economic crisis. This is what caused recession in Europe and the East. It’s not the cause of recession for Japan, China and India. That is the cause of the crisis. (Braman, S. M. 2017).  In fact, monetary and fiscal intercessions in the crisis have helped bring down economic policy by providing fiscal resources with sufficient capacity to meet the needs of the people, as well as to provide monetary and fiscal resources at the times where they were needed to meet the needs of business, the central bank and the government. But, the fact is, the central bank does not have the capacity to do so without some help from fiscal intercessions. The fact that the Government intercession is done on account of the fact that the banks have to raise deposits through non-standard procedures for the first time does not prove that the banks had the right to borrow money. Moreover, the Government intervention in the banking sector may also help to maintain the viability of the bank. (Luo, R. 2018).

References

Theis, K. A., Roblin, D., Helmick, C. G., & Luo, R. (2018). Employment exit and entry among US adults with and without arthritis during the Great Recession. A longitudinal study: 2007–2009, NHIS/MEPS. Work, 60(2), 303-318.

Braman, S. M. (2017). The New Normal after the Great Recession of 2009: A qualitative case study of a rural school district in Ohio
 

 

The Federal Reserve Act requires the Federal Reserve Board to submit written reports to Congress containing discussions of “the conduct of monetary policy and economic developments and prospects for the future” (Congressional Report,  (Links to an external site.)Visit the Federal Reserve (Links to an external site.)website and select Monetary Policy and then to retrieve the current annual report.

• – Briefly describe the policy actions of the Board of Governors during the most recent period.
• – Describe how the U.S. economy has performed recently based on the opinion of the Federal Reserve.
• – Evaluate the Federal Reserve’s current monetary policy. If you were the monetary policy decision maker, what would you do differently? Why or why not?
• – Explain whether you agree or disagree with the Federal Reserve taking action to intervene when the economy is not well-functioning. Why or why not?
• – Appraise how the current Federal Reserve’s monetary policy has been affecting the financial markets and institutions.

 Why do black and Hispanic workers have the highest rates of unemployment? And why do their unemployment rates rise more significantly than other races (whites and Asians) during periods of economic decline?  

 

Colleen Fernandez, president of Rhino Enterprises, applied for a $175,000 loan from First Federal Bank. The bank requested financial statements from Rhino Enterprises as a basis for granting the loan. Colleen has told her accountant to provide the bank with a balance sheet. Colleen has decided to omit the other financial statements because there was a net loss during the past year.

Discuss the following questions:

1. Is Colleen behaving in a professional manner by omitting some of the financial statements?

• + What types of information about their businesses would owners be willing to provide bankers? What types of information would owners not be willing to provide?
• + What types of information about a business would bankers want before extending a loan?
• + What common interests are shared by bankers and business owners?

Your assignments for the term contain several research papers based on a provided article or series of articles that mirrors a concept we will study for that week. Your weekly assignment page poses the question that I want you to research and offer an economically supported answer to. In other words, I want you to give me your conclusion based on the facts that you deem important.

Power generation can be both Monopolistic competition or an oligopoly in the U.S. We as a nation discuss reduction of carbon constant. Replacement mentioned often is renewable energy. Many small companies working on basically the same directions vying for Federal dollars and fossil fuel producers lobby the government to slow down. Both spend millions to advertise their approaches. While decisions about the future are being debated, we have an opportunity to reduce carbon with incentive and procedures.  A carbon tax and a cap and trade idea. I have provided articled on both to get you started. Do a little research, decide which you would recommend and why?

GUIDELINES:

1)  Length of the paper is limited to no less than two and no more than four pages so keep your arguments concise. Title page and references are not deemed as counting toward the two to four page requirements.

2)  You are to use APA formatting, that is the paper should be typed, double-spaced on standard-sized paper (8.5″ x 11″) with 1″ margins on all sides. You should use 10-12 pt. Times New Roman font or a similar font for readability.

3)  Your paper should include fourmajor sections: the Title Page,Abstract,Main Body, and References.