The great recession

The great recession

Article 1

The recession affected the entire nation, and many people suffered. Authors argue differently, but the leading cause of the recession was the government. There are many things that the government did, which affects the economy (Rojas Miranda, 2017). There were no clear procedures about the regulations on ways in which the government could intervene businesses. Some of the rules which the government established were not distributed to everyone. This means that there was no uniform law establishment. For every company to adhere to the regulation and guidelines from the government, everything should be communicated effectively and clearly. New technologies as well imposed some challenges which made some business to drop on their performance since they were not used to the new ways of doing things. Some of the rules were realized by the government, which implied there was going to be few controls. Free movements and few commands can expose every business to the risk of going down (Rojas Miranda, 2017).  For example, in a situation where the government does not impose fines on the people who pollute the environment. This can be a risky way of doing things which can affect the entire society.

Article 2

The great recession which occurred in 2009 affected the economy a lot (Kalleberg & Wachter, 2017). There are many ways in which different authors try to explain ways the government influenced the recession and not the free market. It’s the responsibility of the government to give out regulations that everyone should follow. Even free markets might have caused some issues which lead to recession, but the government had control of establishing the most effective policy. The significant slowdown affected families, individuals, and society at large. He authors in this article further discussed how the recession disrupted the life of everyone. Most of the people turned jobless and that how the rate of unemployment shifted (Kalleberg & Wachter, 2017). The high implicit disincentives to work created through the government policies made some people not to feel active while working. Furthermore, the government didn’t have active programs to master the economic events, which also added to the great recession. Therefore, the authors in this article tried to show how great recession occurred due to the government and not the free markets.

Reply 1

The recession was caused by various things like imbalances in the international trade, lax lending standards, which contributed to higher debts, the housing policies. Many cases are discussed on why the recession occurred. However, the route cause of the recession was from the government. Some of this policy that the government established affected the economy to some extent. In some regions, the government gave out regulations differently. This means that the rules are given to the organizations operating locally and globally were not the same. Any the been trying to start of even the big business sneed some regulations which will guide the organizations towards achieving the primary goal. The higher standards as well established by the government contributed to the recession since some required higher spending. When the government spends a lot, they might end up borrowing some funds to finance their demanding country. Higher debts cab makes the state be declared bankrupt hence causing the recession.

REPLY 2

Recession sometimes occurs due to external or internal factors. Sometimes it might be given to the government other times it might be given to the organizations. However, it should be a two-way game. There is no way the government is going to provide the best to their people while the other hand, the businesses are not cooperating. If the government imposes some rules, it’s the responsibility of the organization to work towards meeting the requirement. However, sometimes the government might impose some policies which, when not changed, might end up affecting the entire economy. It’s, therefore, suitable for both parties to play their part. They can complain about anything they feel the government is not doing well. The blame should not be given to the government only but also to the organizations who are practicing the policies which they think are not best for the excellent performance and the future results as well.