Government Rescue the Financial Crisis

By Chaoran Hu
When the economy is going all the way down to the bottom during the economy recession, the market cannot save itself. At this point of time, government plays an important role in rescuing the economy. People are more likely to forget the importance of the government. One of the questions raised are that how dependent we are on government to minimize the considerable risks and dangers of a free market economy? A free market is beneficial to all the investors and citizens as long as the market is going on a healthy track. Once there occurs economy recession, the government has to interference to retrieve the economic system.

Without the help of government, the free market will be a mess, and the consequence would be unpalatable for most people. Even though, government is one of the victims in the financial crisis, it still has reduced the problems and risks of a market economy for a recovery. For instance, the unemployment insurance, Medicare and Medicaid, food stamps and drug regulation helps to recover the market during the economy recession.

Obviously, the American economy cannot survive without the regulation of the government laws and policies. And we are all better off for it, even though it sometimes can’t always regulate and ensure a healthy market.

Resources: http://www.governmentisgood.com/feature.php?fid=26

http://www.verumserum.com/?p=2649

http://www.associatedcontent.com/article/1332137/the_financial_crisis_government_as.html