The American Recovery and Reinvestment Act Pros and Cons
America is a capitalist society, but the government often steps in to try to fix things. As the economy collapsed, a large step was made with the American Recovery and Reinvestment Act of 2009. It is debated whether this stimulus package was effective or not.
Our society is based is based on Capitalism. Capitalism is a free market exchange. This is being able to come up with ideas and products and freely sell them. Capitalism involves less government control. The government doesn’t monitor everything that goes on within the market, they just set up the guidelines. The guidelines cover safety, environment, monopolies, etc.
Capitalism is based on ind 760-605-0949 ividual’s rights of freedoms. This allows peoples to buy and sell according to their will. “Laissez-faire” means hands off. The government is required to leave the market alone and allow the market to achieve its best products by taking care of itself. Government control generally negatively affects the market.
Market Darwinism, a term described by Herbert Spencer, is survival of the strongest company. The best company survives, creating the best product for the eocnomy. For example, the recent car bailout of Chrysler, Dodge and Ford didn’t allow another company to fill the space they would have left. According to Market Darwinism, the new company would have been superior and able to increase the economy. Instead, the tax payers were left with a debt and a stagnant car industry. The government took partial control of these car companies, causing an infringement of the rights of capitalism. When the government begins to control the market, it is no longer capitalism it is socialism.
The financial and housing market collapsed in 2006. Faulty loans made it impossible for borrowers to repay their loan. A faulty loan is a loan with an unfixed rate, which...