In the 1930’s the United States entered a terrible depression caused by a “crash” in the Stock Market. Thousands were left homeless as banks failed and money was no longer distributed as freely. It is now 2008 and this country has moved beyond the possibilities of a depression…or has it. Recently the Stock Market is in turmoil. In order to stop our economy from falling into a similar depression, congress passed the Emergency Economic Stabilization Act of 2008 commonly known as “The Bailout” which allows the government to step in and purchase distressed assets. The act, proposed by President George W. Bush is also supported by rival candidates John McCain and Barack Obama. A potential negative effect of the Bailout would be an increase in taxes to cover government spending on the distressed bank assets. A minor outcry has erupted over this issue which brings to mind an important debate: Higher taxes or an unstable economy. Many people complain about how high taxes are now. While the bailout may save our economy now, the increased taxes may hurt the economy further down the road. Debates over the bailout still continue in congress.
- Dan Mann -
Posted by rhsramblurr 


