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://ar

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