Student Blog: Law, Markets, & The Role Of The State

QUESTIONS

By Michelle Tran on September 15, 2009 - Comments(0)

It has been 80 years since the United States endured the Great Crash of 1929. Although we would like to say that the market got better and that the economy is at a better place- the truth is chilling. The United States is currently undergoing the worst economic crisis of all time. The economy remains week, and the government is scrambling to create programs to control the seemingly uncontrollable economic catastrophe. However despite the government’s attempts to restore our financial situation, the economy continues to languish under weak job growth and the sale of real property.

In a recent interview with banking analyst Meredith Whitney, Whitney claims that “it’s very difficult to get the engine moving without a lot of government support.” Is this true? Can we actually pull out of our current situation with the support of government support? Should we, as a country, rely on the many governmental decisions that may or may not pull us out of this economic crisis?

These are not questions that can be simply answered by “yes” or “no.” In light of our current financial situation, it is going to be extremely difficult to gain support of a nation who perhaps blames our political unit for our current misfortune. On the other hand, there may be nothing else that the people can do, but hope that the economy slows pulls out of the recession. What is certain is that our nation is slowly pulling out of the recession as our unemployment rates are showing modest improvement (slowly but surely). There is a promise of generating job opportunities, and a hope that our financial situation will get better. Like the Great Crash of 1929, it takes time and a lot of support of the people to pull through and stabilize our economy.

I think the bigger question is, when we do get out of this recession, what can we do as a nation to prevent this type of situation from happening again? What actions can our government take to avoid such a financial downfall that affects millions of unsuspecting Americans? These are the questions that need to be answered and sorted out as soon as possible.

Tags: 1929 Great Crash recession
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