Government and Economy Outline
GOVERNMENT AND ECONOMY 4
The2008 economic crisis was a turning point on the involvement ofgovernment and its agencies in balancing and regulating economicactivities (Bernanke, 2009). The Government of the United Statesplayed a very important role in ensuring that the economy gets out ofthe crisis.
Differentagencies and the contributions of officials facilitated actions thatrevived the economy as follows:
The Presidency sought the political will of the Congress to pass laws that allowed stimulus spending to stimulate the economy (Congleton, 2009).
The Congress passed laws that created an environment could prevent further economic recession. For example, the mortgage industry was subjected to new measures that curbed over-speculation (Campbell, 2013).
The Federal Reserve channeled funds to target institutions that the government earmarked for implementing the economic recovery program.
The Treasury advised the President of the United States on the right policies to pursue in order to revive the economy.
The Department of Housing assisted the Government in crafting legislation that regulated the lending activities of the mortgage industry. The mortgage industry was largely responsible for the over-speculation that caused the credit crunch.
The Department of Commerce through the Secretary pursued policies that encouraged The United States to have positive net exports as a way of stimulating the economy.
The Department of Justice implemented new laws that regulated the Wall Street and other financial players in the economy.
Bernanke,B. (2009). Financial reform to address systemic risk. Speechat the Council on Foreign Relations,10.
Campbell,J. L. (2013). Institutional analysis and the role of ideas inpolitical economy. Theoryand society,27(3),377-409.
Congleton,R. D. (2009). On the political economy of the financial crisis andbailout of 2008–2009. PublicChoice,140(3-4),287-317.