Inequalities caused by the 2008 financial crisis

Inequalities caused by the 2008 financial crisis

After the 2008 financial crisis, the government had to step in and bail out several companies to prevent the economy from crashing. However, in the opinion of most Americans, the situation worsened the following year. The stock market plummeted even further and this had investors panicking once again. Despite government programs, foreclosures kept rising. Further down in October, the unemployment rate rose to 10 per cent for the first time since 1982. On paper, the economy appeared to be recovering. However, the damage was felt for a long time as people were forced to take up jobs which paid far lower than before. There were great inequalities created in the economy.

 

There was a lot of outrage directed towards the government due to its reaction to the crisis. Billions of dollars in taxpayer money were used to bail out the banks. Many people felt there was no oversight since most banks ended up in the situation due to their greed. People believed that had the banks been allowed to go bankrupt, their bad assets would have been written off and the good assets could have been bought off by other companies. However, experts suggest that the free market wasn’t strong enough to resolve the issue without government intervention. The issue was finally settled on August 21, 2014, when the Bank of America agreed to pay the U.S. Justice Department $16.6 billion, the largest settlement in the U.S. history.

 

The resultant inequalities in the U.S. economy have since had everyone keep up to date with the economic proceedings in the country. The Department of Economics at the Northeastern University had undertaken the task of conducting a three-part forum on economic policy in America. The objective of the forum was to feature frank discussions with prominent policymakers and thinkers who will tackle topics like income inequality, healthcare policy, and the nation’s economic future with the lay audience in mind.

 

Harman Singh

Harman Singh
Harman Singh

getharman96@gmail.com

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