“Even with the challenges in the U.S. economy, America is a ‘lucky country.’ “
During a CNBC interview, former Treasury Secretary Tim Geithner said the market reforms after 2008 put “much more capital into the system” and “much tougher rules on risk-taking.” He went on to say that the reforms are strong enough, if they’re not eroded, to buy this country a relatively long period of financial stability.
Although the American economy is doing relatively well and making steady progress at the present time, a financial crisis will happen again at some point. Still the structural reforms undertaken after 2008 can serve to mitigate any future damage. Mr. Geithner concludes that if a financial crisis does happen in the future, the Federal Reserve and the government would need to act again.
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You may want to use the information in this blog post and the original article to
- Discuss how the economy affects the lives of the average U.S. citizen.
- Point out specific steps the government took to stabilize the economy and the financial markets during the economic crisis that began in 2008.
- How does a healthy economy affect you and your family? How does a weak economy affect you and your family?
- At a time when many people believe the government is too involved in the lives of individuals and business, should the government take steps to stabilize the economy and financial markets during an economic downturn? Explain your answer.