It is difficult to say that the government should intervene. In class, we discussed how some economists believe that the business cycle will cause the economy to solve itself. I believe that. I think the government should wait for the economy to stabilize itself. Also, because people tend not to have much confidence in the government right now, I feel like intervention from the government could actually serve to slow the process of closing the gap.
I agree with the comment above, i feel that at this point people want to blame everything on the government everyone wants to point the finger at the government when something all of a sudden...but at the same time everyone expects for them to fix everything at the same time, i believe that it's also hard to say whether the government will make the gap close or open more so i believe that the government can only help on closing gthe gap.
I agree too that the government could do more damage then harm at this point. It will take time for an improvement and I don't know if the government could do too much to heal it at this point. I don't think that the government should have to fix everything. I agree that it will take some time for progress with or without the government's help.
I think that the government should not do anything and let the system work it self out. The government can either make that gap bigger or smaller and I think if they were not to do anything that it would work out just fine. If they stay out of it then we can progress and not always be dependent on the government.
I agree will all of these comments because I believe if the government does get involve I feel there will be more damage to the GDP gap, like we discussed in class the government cant control and cant keep track of our finances, I think we should wait for things to be more balance before the government gets involve.
I believe that the government would do more damage to the economy. We have to let our society solve the problems we are facing. I personally don't want the President to solve our problems like FDR did. Our society is in baby stage so we have learn how to walk and talk by our self. It going to take a while to learn how to walk and talk correctly.
I believe the government should intervene to an extent. We have seen in the past that they can actually help, as we saw in the great depression. The government helped pull us out of the depression and helped us prosper again after a while.
I agree with alot of previous comments that the government shouldn't step in to fix the gap. I don't think that it would help if they did becuase people have lack of faith and fear when it comes to the government. The only thing I can think of for them to do is provide guidance to everyone, but there's no guarantee people will follow the advice.
If there was a recessionary gap between actual GDP and potential GDP I think that the government should intervene because they are responsible for most of the bad things that has caused the economy to go down. There is enough tax payers paying taxes that’s why it should be worth it. Meaning when there is something wrong with the GDP or if there was to be a gap the government should act fast and intervene and try and close the gap with whatever it necessary.
I think that if there was a gap that the government should definitely not intervene. if the goverment was to intervene they could possibly makes things worse. I think the risks of government intervention is far greater than the success of closing up the recessionary gap between actual GDP growth and potential GDP growth. I think the system should let the system work itself out, if things get way to out of hand and start going downhill fast, government intervention could be necassarily. but only under those extreme conditions.
The only form government should intervene to close the gap between the potiential GDP and the actual GDP is by informing the citizens or consumers on what they should do to put their part into helping better the economy. I believe that a huge part of why we are in the place that we are today is because a vast majority of the population doesnt know what's going on and dont consume. All the government has to worry about is informing those less educated in this area instead of risking our opportunity to improve.
I think that government should at least provide some guidance to people and see wheter they follow it or not. I think thats the most the government should get involved. Also we wont now what would happen until we try it.
I believe that government should be allowed to intervene when necessary such as when there is a gap in actual and potential GDP growth. Sure things are good when there is a free economy that is running itself but in the event of a severe gap such as a recession or a depression the government is the one to take us out of it. If we look back to the great depression it was monetary policy and some new deal policies that got America out of the rut. The overall economy is much safer when there is a back-up plan for such an event. An unsupervised economy sounds nice but when you think about it, everyone's incentives is centered towards themselves, not to how will this effect the grand scheme of things.
Sorry to disagree with most of my classmates. I do believe that if the government has the ability to close a recessionary gap then they not only should intervene but they have a responsibility to. I believe that people allow governments to exist because they serve the best interest of the people they govern. That being said it is in the best interest of the people no to have a recessionary gap and for an economy to be working at it full ability.
I believe that if the government wants to intervene I say let them. I also think that it can't get any worse. There has been times where the government has pulled through and has helped in cases. The gap has only two directions up or down and I can't see the government affecting it much. Josh Pond
I agree with the first comment, if there was a recessionary gap between actual GDP and potential GDP, I think it is difficult to say whether the government should intervene. Because even though government can grasp the overall situation, but it cannot know every detail things, so maybe government will make it worse. But I think that government can give some appropriate measures, after all, it has the responsibility to do it. At same time, the system should let the system work itself out.
I think that the government should not do anything. I think that things will eventually work them selves out and that would be better for the long. I think that the government quick fixes just cause more damage in the long run.
If there is a recessionary gap between actual GDP growth and potential GDP growth, definitely it is not healthy, and the problem about should the government "intervene" to close the gap or not is depending on what kind of economic model it is. In my opinion, more or less, the government should do something if it happens to give people confidence. At least the government have the responsibility to do that.
If there is a recessionary gap between actual GDP growth and potential GDP growth, I don’t think the government should “intervene” to close the gap because the government could possibly make the situation worse. While the government is already in a tough situation with our economy, it might be best if the government leaves the gap alone. I think the government will naturally adjust in the long run and everything will fall into place as it is supposed to be.
In my opinion, the government should not intervene in a recessionary gap between actual GDP and potential GDP growth. Adam smith said that there is invisible hand in economy. It means invisible hand solve and control the economy. If the government intervene something, they cannot expect some bad event that recession. Under this circumstance, I believe that the government should not intervene.
I think that if there is a recessionary gap between actual GDP growth and potential GDP growth, the government should not intervene to close the gap because the government will make this situation more difficult and worse. The government already made our economical situation with difficulty. I think that it would be the best way that the government should remain the gap alone. I mean that if government leaves the gap alone, our economy will control and solve the economical problems well. I know that the government wants to do something to grow our economy, but I think that intervention of the government will make recession. So, I think the government does not have to intervene our economy.
i believe that if a recessionary gap is not too big, the government should be better let it solve itself out. a gap between actual GCP growth and potential GDP is normal. the intervention of the government in a wrong time, it will bring bigger problem, cannot easy to handle it. the best way to solve this problem, i think, is just let nature take it course.
If there is a recessionary gap between the actual GDP growth and potential GDP growth, the government should stay out of it. Just because if the economy is bad they would not spend money so i believe what we learn in class about the business cycle is the best choice. it will be worked out by itself with no intervene from the govt. I believe in due time it will be better once things settle down and in the first comment i agree with because people don't trust the government and they do blame every little bad thing on them. they should not intervene at all
As many of my fellow students have said, I would not have the government intervene if there was a gap between real and potential GDP growth. In many situations the government can complicate the situation rather than help it. Economically the situation will be naturally worked out over time. Therefore, the government should not intervene.
Government should not intervene to close recessionary gap between actual GDP growth and potential GDP growth. I think the reason why our interest rate is at low level is because government has controlled over federal reserve and treasure department, by simply printing out more money. I wish that government has no control over on long term interest rate and let our economy move by itself, otherwise it will be reflected on our potential GDP growth, mortgage rate, lowering in housing, and more increase in inflation rate. At this point, I don't see the sign of improvement.
Yes, the government should help. If you look back on the lecture from Thursday you can see how the Federal Reserve can close the gap. Well if the government gets involved maybe they can push the fiscal policy and push the FOMC. The government is here to guide the American people and give aid when needed just not sure when.
I think that when there is a small recessionary gap between actual GDP growth and potential GDP growth, the government shouldn’t intervene to close the gap. I think that in a small recessionary gap, the economy can recover the gap itself. However, if there is a big gap between actual GDP growth and potential GDP growth, I think that government should intervene to close the gap. To recover the big gap is hard and takes long time to recover by economy itself. Actually, sometimes a government’s intervene made the gap worse and last long. However, I think that actually, to predict the economy and make it better is hard work because there are lots of variable. However, government affects a lot to economy. I think that if the government make suitable policy to economy, intervene of the government is necessary to recover the gap fast.
If there is a recessionary gap between actual GDP growth and potential GDP growth, the government should “intervene” to help close the gap, but only to a certain extent. There are things the government can do to help, but they can also make things worse. The best thing to do might be to just leave the gap alone in hopes of it closing naturally. If it gets out of control the government can try to help close it.
I believe that the government should not intervene. I feel the business cycle will take care of the gap and correct itself. If the government were to intervene right now, it would slow down the economy even more due to citizens unsureness in the economy already.
I think the government should not intervene in a recessionary gap between actual GDP and potential GDP growth. Because Business cycle cannot control anyboby. Also, economy will stabilize and recover itself. If government intervene between those GDP. Situation will be worse than now.
It's all part of the business cycle ladies and gentlemen. The recessionary gap between actual and potential GDP will close or reduce its gap when the time comes. We have been in this "recessionary" gap for years now, with or without help or intervention from the government, the gap will continue to follows its way as is. I believe that everyone as a whole can make a change or play an impact on the gap, not just what government decides to do. Plain and simple......its all part of the "business cycle."
I believe the government should not step in to help close the gap between actual GDP and potential GDP. The government has no idea on how to recover the economy so they need to let the economy fix itself. However if the government had the right plans and knew what could possibly benefit the country then I would be for letting the government step in. So far they have not helped much at all. The country needs to stop waiting for the government to save them and take action for themselves and their community. Us as citizens can help with the economy, all that is slowing us down is the lack of education in this subject.
I dont believe that the government should intervene in closing that gap because it is true that if something does go bad in the economy then everyone just starts blameing the government. So, for the good of everyone i think that for now the government should just leave the economy to flow on its own and later if there is something that the government can do to help then it would be good to step in and help out.
Although I believe that the economy controls itself and that it works best when the government does not get involved, I feel that in certain instances it may become necessary for the government to become involved to help close a gap when the economy is struggling to do so on its own.
I think it is difficult that the government should intervene to close the gap. The government should just look how economy stablize. Many economists said that government's intervene is not good for economy. The famous economist Adam Smith insisted about that. Most of people know that theory 'invisible hand' i think this theory can solve this gap between actual GDP growth and potential GDP growth. I think this problem is not big, it can be solve automatically. If government intervenes wrong, the problem will be bigger
In my opinion the government shouldn't get involved, to my sight there is too much pressure placed on it alreday in various things. I think they should let us as a big country we are solve our problems and take our own risks and therefore, learn from our own mistakes, in other words they can't always be holding our hands.
I think the government should do the best they can at trying to close the gap and not trying to do anything out of the ordinary or something new that will cost the gap to grow bigger. Or perhaps actually just let the problem come together and fix and fall in place on it's own. I believe that if the government just sit back and look and they will solve the problem without intervenes so much about it. They need to cut out the unnecessary support that the government are supporting, and taking a lot of money from the government.
I believe that the government should intervene to close the gap between actual GDP growth and potential GDP growth. I think that our economy can have the gap like a recession when it goes on freely, so the government should try to control the problem. As we know, we could overcome the Great Depression with some new deal policies. Somewhat intervention of the government would be helpful to stabilize our economy.
I believe government should not intervene with business and the natural growth of our nation. tension from the government onto business will put the pressure on them to still keep their bottom line while still making their goods and services reasonable to the consumer. so inturn it puts pressure on them to down size and make cuts so they dont make less money. overall affecting our real GDP and go backwards from our potential GDP growth
If there is a recessionary gap between actual GDP and potential GDP growth, the government should intervene. Yes, I understand that it’s all part of the business cycle, but if the gap gets too big then intervention needs to be implemented. If you look into History – like some of my classmates have – you will see that in the Great Depression intervention was definitely needed. I don’t think the government should intervene if the gap is small, but if the gap is huge you better believe I think the government should intervene.
For me, I think government should not do anything and let the system goes itself. Because govenment can make the bigger gap and smaller too. So I think we cannot justify government intervene is good or bad. It can be there are both side of result. So I think government should not intervene on the system.
Everytime the government gets involve things get shitty excuse me. But i feeel like things are already screwed do to dumb government desicions. Government has the ability to change thing so much wheter they make it bigger or smaller something will cause an error to the GDPgrowth so with that being said screw the government and let it work on its own !
At this point I think it would be wise for the Gov't to intervene...I would love to see Obama and the other members of the cabinet begin to put some public works projects in the making. Not only would it help alleviate the unemployment rate but it could also make us quite a bit more self sufficent if we used our resources to fund solor energy fields or more wind turbines...I could use something to look at on my way to Vegas.
I agree with what many of my classmates say. I do not believe that the government should intervene with what is going on in the business cycle. From what I learned in most of my classes in Economics the business cycle functions in its own way so it would be difficult to predict a recession at an early time. Sometimes the government just has to let the economy flow the way it is going to go because to be honest sometimes we do not know we hit a recession until it actually hit us. That is my opinion on this matter.
I feel that the government should intervene in certain scenarios. We can't predict recessions, and philosophers would argue that this is simply just a temporary imbalance and things will flow back to our normal economy status. I do agree with them in this case but I believe the government should have intervened in the housing market. For example they cold have put caps on the amount of loans brokers could provide or increase the Federal Fund to limit amount of exchange amongst bankers. However, that also contradicts the idea of free markets, but maybe it could have helped our economy to begin with. In most minor cases though, I would have to agree that the government shouldn't intervene. On major cases, I feel that they should on some level.
The government should intervene between the actual gap and potential to maintain the stability of the business cycle.The government usually stimulate by setting monetary policies so if there is a big or a huge gap between potential or actual gap it will indicate that the government should change its policy in order to reduce the gap.
Everything in life consists of proper balance. For example, making share you balance out your studying time, making sure you balance out your work schedule according to your school schedule, etc. With that said, I think the government should intervene in a balance manner. It shouldn't try to seize absolute control nor should it not help in time of need.
I believe that the government should not intervene if there were to be a gap between actual GDP growth and potential GDP growth because it seems that they tend to make things worse and complicate everything. Eventually the economy will settle itself out over time.
i dont beleive the governtment should get involved if there is a gap between actual GDP growth and potential GDP growth because they will only mess it up and make matters worse.
I do not think the government should intervene to try to fix the gap between actual and potential GDP because it is only going to get worse. I agree with my classmates that people will only fear the government causing an opposite effect.
I don't think the government should intervene to try and close the gap. They should just let it runs its natural course. A gap should be expected from time to time and if the govenment tries to get involved each time it would only get worse. In addition the govenment should not be wasting efforts trying to fix something that will work itself out when there are plenty of other important issues out there that could use govermnet attention.
To be honest, I believe that the government should not intervene in closing the gap. The government always has to get involved in everything that's happening and eventually thing will work themselves out. Something bad is bound to happen if they should happen to get involved. Things should have the time to figure themselves out once in a while.
I also believe that the government should intervene to an extent. We have seen that government intervention could help certain situations. 2 Good examples are gas shortages during the Nixon years, and the Great Depression. I also believe that too much government involvment could cause the problem to grow. There is a fine line between the right amount of intervention and too much government involvment.
It is necessary on certain situations for government to intervene. It is when the gov intervenes too strongly that causes problems. I am a believer in the invisible hand and I think that the economic problems will eventually work themselves out through slight gov intervention.
I believe if there is a recessionary gap between actual GDP growth and potential GDP growth, the government should step in an help the situation. Also the government should have restrictions of what they should and should not do because too much government is not healthy. For instance, there should be a balance on what there restrictions are on helping the situation because there needs to be a balance in everything. Like homework the more you do the easier to understand the work. I believe they should help but to an extent. In are recession now I think the government should just control it not fix it. This would limit the downfall of the recession.
If there is a recessionary gap between Actual GDP Growth and Potential GDP Growth government should intervene to close the gap. Fiscal Policy: HIGHER GOVERNMENT SPENDING + lower taxes= EXPANSION
If there is a recessionary gap between actual GDP growth and potential GDP growth then the government should intervene to an extent to try and close the gap. It's treading on rough waters, because the government should try to maximize the potential GDP growth, but it should also let the business cycle work itself out again. It's a tough balancing act and the government can only do so much to intervene. The government can pump money into the system and try to close the recessionary gap, but if the citizens aren't spending money than it won't do any good. So the governement should try to close the gap, but at the same time let the system and citizens try to close the gap itself.
I believe in the saying that the business cycle will fix itself but I also believe that the government should only intervene in the business cycle only and only if the gap of actual GDP and Potential GDP are at a point where our economy cannot further sustain itself.
It’s difficult to say whether or not the government should intervene to close the recessionary gap because we’ve never had a recession quite like this in our history to draw from. I would normally say the government shouldn’t get involved in closing this gap. The government already spends far too much money on programs and other projects than they should be spending, and in some situations, the government could potentially make things worse. For some time I have held the belief that markets work best and governments don’t. However, with that being said, without government involvement and the spending during World War II, I think the great depression could have continued much longer than it did, causing much more damage. Through time the business cycle will sort itself out but the question is, how much time will it take? People are choosing to hold on to their money instead of spending it on goods and services, because they are fearful and uncertain of the economy, so this almost leaves the government no other choice but to continue spending hopefully creating more jobs. If something can be done in the short run to close the recessionary gap, I think that will be beneficial but after the gap closes, the government needs to seriously cut back to help economy. Unfortunately, the government seems to have a hard time doing this.
I believe that the government should step in and help close the gap. That's why we have a government in the first place, to help keep our country safe and stable. Sure the government has made mistakes, but look at all the good the government has done. Without government involvement our country would not be a powerhouse in this world that is today. Plus what IF the economy doesn't stabilize itself or what IF it takes decades to stabilize itself? I doubt the government would do more harm than good at this point like some people said above. I also read someone's blog above where they said the government is to blame for the recession. Wrong!! People buying houses they couldn't afford caused the recession, among other factors, but the government is not 100% to blame. Of course not everyone is going to agree with the government's decisions all of the time. But for all the people who bash our government, I have one question for you...why don't you get a job for the government and make the decisions if you're so much smarter? Rather than just sit back and ignorantly blame the government for everything.
Although economics discusses government spending and lower tax rates increasing growth some decisions made by our elected officials have seemingly robbed us, bail out money did nothing for the good of the common man, the money spent could have been better served and the mortgage intervention spending did nothing but help banks they chose to help. Federal government has only created problems by intervening. To get back to the mortgage intervention, yes interest was at an all time low but the cost of housing was at an all time high, so the market was a fools gold to the common man and a true gold stock to men like Charles Keating. Political Societies intentions are to feed them selves off the dime of the commoner.
I Believe that the government should only intervene if the gap of actual GDP and Potential GDP are at a point where we as an economoy cannot fix it ourselves. But i do believe that the business cycle will work itself out without the help of the government
Alrighty, after discussing this stuff in class, I'm willing to swallow my own personal feelings and say that the Government intervention may have done what it needed to do (stimulus) to keep this recession from turning into a complete catastrophe. My problem with it is, us from the working class aren't retarded. This shattered economy was built up on the backs of people being horrifically irresponsible, the Government has gone about picking up the pieces, but the bottom line is, we're going to get stuck with this bill. The Gov spent nearly a trillion dollars and my life was totally unaffected. However, the only thing I'm sure to see in the future is higher taxes to deal with the debt. I think the Gov should have intervened and clipped taxes to all time lows to increase spending, and had a plan for graduated increases in the future, back to "normal". Fear and uncertainty about the economy, along with the fear of higher taxes in the future to pay back the checks the Gov wrote put a lot of people I know in the position of holding on dearly to every dime. I don't think the stimulus increased the spending curve like it SHOULD have. I just don't think the Government knows best how to spend our money. Give me money, and I'll spend it on something fantastic :).
Lots of great posts up there! Shout out to Mallery (clear points thoughtfully conveyed) and Mr. Beitzel...subordinating your personal feelings is admirable! However, you made valid points as well. The nearly $1 trillion surely has not benefited Southern Californians much...yet, we are all hear dealing with the fallout still.
I believe that the economy can get on the right track eventually without the government intervening. The economy works as 'roller coaster' sometimes we are at the top peak, and soon after that we are at the lowest point, and slowly make our way back to that top peak again. If the government tries to intervene in the cycle, they could most likely make the economy worse, and the citizens are already putting the blame on them for the problems we have been facing.
I don't think the government should intervene if there's a recessionary gap between GDP growth and potential GDP growth because they might just end up doing more damage to the economy. Eventually the economy will stabilize itself. Unless the economy is really in deep recession then that's when the government should intervene. It all depends how bad the situation is because we don't know how long the recession is going to last. It's best to wait and see if the economy can get back on track on its own, if not then maybe the government should try to intervene and see if they can improve things. -Daisy Guan
At first, it is truly hard to discern whether the government should intervene in an attempt to close the possible recessionary gap between actual GDP growth and potential GDP growth. As many others believe, I too can see the pros derived from this course of action if the market should attempt to correct itself, however, with hope that a series of positive “real shocks” will rectify the process at a faster rate. We are living in an age where technological breakthroughs are not only increasing at a far more reoccurring rate, but on a much larger scale than before our time. It is only a matter of time before the “next breakthrough” alters the way we work, grow, spend, and live, will help the market decrease the gap.
i think that the government should no longer intervene, because it has done enough damage already. i have to admit that the government's stimulus package actually saved the economy from being much worse. With that being said it was also the government who decided coincidently to start paying interest on reserves which has banks holding more reserves and not making the necessary loans to get our economy back on track. it is also the governments fault our deficit is soo big, and it is the citizens of this country who going to have to pay for all this spending through taxes(which i hate with a passion, as im sure any working person does.)
i believe that if there is a recessionary gap between real GDP and potential GDP the government should intervene. as much as we say we don't trust the government, businesses and the government can work together to fix problems which in my opinion will be better off then if we just wait things out.
I think that the government should intervene if it does it in the right way. There can be pros from the government intervening. But I also believe that the government should be efficient so this should be done in the most efficient way. The private sector may be able to work itself out but I do think that there is a time fo government intervention.
In my opinion I don't think the government should intervene because they might think they are helping in the short run but in the long run it can be more damaging. Trying to help close the gap could potentially make the gap bigger so I don't think the government should intervene.
I believe that the government should not step in. Eventually if everything else runs smoothly, the gap will work itself out. It almost always does. and by not intervening they are helping us grow for in the future.
My personal opinion would be for the government to not intervene to close the gap between actual GDP growth and potential GDP growth. This is because it will help for the future times when there is a gap and it will work itself out.
I believe that the government should close the recessionary gap because they do have the ability. It is also their responsibility to do so. If the government were to jump in, I don’t think it would effect it anymore then it already is. It make herlp it but I don’t think it could make it any worse.
I'm not too sure... I would say that the government would know best, by that I mean the true government, that's there to protect the interest of it's people, not giant corp. who get hand me outs when stuff hits the fan. I know many believe that the markets correct themselves, but I say if those who are specialist in the field see an opportunity that exist to correct the issue, then let them do their job.
What the goverment needs to do is to stop cuting the public education budget and start getting jobs in the Inland Empire due to the high numbers of unemployment and then when thousands of jobs are created only then raise taxes to reduce our deficit, we also have a gas price problem that needs to be fixed that can reduce the recessionary gap to spend money on the right stuff not on the wrong stuff that increases the deficit.
I believe that the government needs to step in and make some sort of effort to help encourage people to get back into spending. They have made some efforts but people are still fearful, and fear is not going to get the economy anywhere other than into more of a recessionary gap. It's sort of a team effort effect that needs to take place, the government can only do so much before we have to take our turn and catch the ball, and not doing anything probably won't get us very far either.
I think government can do is little thing because doing something is Media and people. we can see everytime that actual GDP and potential GDP have gap between them in CNN or other news channel. After we see our GDP is increased, we expect that our economic life will be good. However, actually, It is not. When people think like this, government should do 'little things'. Goverm. cut down taxes or prices for a while to make people purchase goods and use their money, although taxes will be increased again. I think it is the only thing that goverment can do.
If there is a recessionary gap between actual GDP and potential GDP growth I believe that the government should give it time for the recessionary gap to close. Either people will start spending more which will close this gap or if nothing happens during that time period then the government should step in and give incentives to have people spend. When people spend and a lot of money is in circulation the economy tends to fix itself. This is the only time that I can see the government intervene to close the gap.
I feel that this question is subjective and that there is no right or wrong answer. To me, it would depend on how big the gap was and how long we were in it. I think that the government should intervene if the gap was large because it would probably needs some help to overcome some of the sticky prices and wages that would occur.
For the most part i believe the government should not intervene. We need to take matters into our own hands and close the gap ourselves without the governments help if that doesn't run smoothly then and only then should the government get involved.
Wow, this is a difficult decision to make. It is also scary to do. It is hard to say wheteher the government should step in or not. I do not know no more if the governement does good things or bad things for us. Since they are the once who take all the actions. I will make a choice, I will say NO, the government should not step in because they have done choices in the past I do not agree with. Like I think we mentioned in class, too much governement power equals slavery.
I think that the Gov need to help keep the economy in check. so yes the gov may need to step in if there is a gape that is large but if there is a small gap no the market will fix it's self.
i think the the government should intervene if the growth is to large then they cant just sit there and just let it happen. The government should really should do something, i think that they could really help if the market is to down and gdp gape is to large.
I agree with what some of other students said. In my opinion, the government should stay out of it for a wail and see if the problem could fix itself. If it can’t fix itself than the government should step in, it’s like keep it toured the end but first give it a chance.
I believe that the government should step in but not necessarily close the gap but to guide the market in the right direction and watch over it to make sure things are moving more towards a positive outcome.
I believe the government should stay away from the gap and not get involved. Let the "invisible hand" do its job and the economy will eventually sort itself out. Many people don't like to hear that because they want solutions and results now for our recession. But i think big systems will take awhile to resolves themselves. But we've gotten out of the hole before and I don't think the government can save it with any rules or regulations.
If there is a recessionary gap between actual GDP growth and potential GDP growth, should the government "intervene" to close the gap? Why? Why not?
I believe that the government should defiantly intervene to promote economical stimulus by establishing policy that reduces tax's to entrepreneurs therefore helping to create more Jobs, which is what the economics really needs. If the government is not preforming to its full capacity then we can assume that the government is sick. To provide medication for our sick economy we will have to establish a modern economic system that is better able to deal with our new global and instant economy.
I do believe the gov should help. The federal goverenment clearly has the ability to close the gap and if they get involved maybe they can help change things. Pushing the the fiscal policy is one of the simple things they could do. Part of the problem is the government is not stepping in when we, the people, feel like it is necessary and instead are trying to aid in unnecessary ways.
Yes the government should intervene because they are in control of our money. They need to either increase or decrease the money supply or increase or decrease taxes
I dont think that the governent should intervene. What goes down must come back up and I think that theres very little that the government could do besides spend a little more money. Weve gotten stimulus checks, and the gov. has been working on projects such as fixing the streets/freeways in order to create new jobs, but even those jobs are temporary. Besides the fact that people are so sceptical and untrustingof the gov, to add some new proposal would probably leave a bad taste in people's mouths. I think these little steps could help, but as far as any HUGE bill being passed or any HUGE moves being made, its a little too late.
I think it is difficult to say if the government shoudl intervene. When you look at this question you view the things that the government can do when this is occurring during the recessionary gap because there is very little that the government can do. All the government can really do is spend more money but that in a recessionary gap does not mean it will improve the economy. Not just is the recessionaty gap effected but you also have to apply it to your business cycle. This is my believe on this topic.
I don't think the governement should intervene. As we learned in class, even if they did intervene and tried to implement policies to fix the gap, it could take years to carry out and by then may be useless. I believe that in time it will naturally correct itself, without any intervention from the government.
I agree too that the government could do more damage then harm at this point. It will take time for an improvement and I don't know if the government could do too much to heal it at this point. As we learned in class, the economy always tries to return to normal. I believe that eventually the economy will eventually fix itself. Government intervention might cause more problems. I feel it is like the banking industry a few years ago. Even though there was government intervention, many companies still went under but at the cost of government money.
I believe that the government should intervene in the way of enforcing new regulations. I think a good idea of enforcing regulation on banks, insurance, and wall street can actually help out alot. The reason is that sometimes therse large institutions take advantage of the system and benefit from weak regulations. For example , the housing market was manipulated by large banks benefeting from stacked home mortages. The breakdown of the housing market could of been prevented if the government had intervened. Many of the large CEO.s WEre never arrested or penalized for their mistakes.
I think the gap will eventually close on its own sometimes when the government gets involved it could do more harm than anything. That’s not saying the government couldn’t partake a little more in trying to stimulate the economy, by lower taxes or other sorts. If we give it time and the government gives it a push now and then the gap will close. It’s hard to say either you want the government to be involved or you don’t. I think the government should be on their game and if they see something they can better they should do it. But not focused something, it could just make things worse.
There's always an opposition to government intervention, but I think the government should be able to "lift" us out of bad situations when deemed necessary, not so much as to babying us the whole way through. Right now, even with our economy the way it is, and all the international issues going on in Libya and Japan, as long as we don't see a severe decline, we should wait it out and see it stabilize itself.
Maybe government should intervene in the way that we have more regulatory policies to police banking activity so we don't get into this type of situation again... the opposite of de-regulation.
Its a tough question, but I think the government should let the economy try to work itself out before stepping in. I feel that more government spending should be the last resort and should only apply when all else fails.
The government cannot control every single person in the US. It could try and predict that actions based on past tendencies, yet it will not force residents to respond the “correct” way. Some people would go crazy and start protesting if the government tries to intervene too much. That said, I believe that the government should give it some time and could aid a little but not too much.
A government can only do so much to help close the gap between actual and potential GDP growth. Consumers must also try to close the gap and thus, government should not intervene; let nature take its course.
It is difficult to say that the government should intervene. In class, we discussed how some economists believe that the business cycle will cause the economy to solve itself. I believe that. I think the government should wait for the economy to stabilize itself. Also, because people tend not to have much confidence in the government right now, I feel like intervention from the government could actually serve to slow the process of closing the gap.
ReplyDeleteI agree with the comment above, i feel that at this point people want to blame everything on the government everyone wants to point the finger at the government when something all of a sudden...but at the same time everyone expects for them to fix everything at the same time, i believe that it's also hard to say whether the government will make the gap close or open more so i believe that the government can only help on closing gthe gap.
ReplyDeleteI agree too that the government could do more damage then harm at this point. It will take time for an improvement and I don't know if the government could do too much to heal it at this point. I don't think that the government should have to fix everything. I agree that it will take some time for progress with or without the government's help.
ReplyDeleteI think that the government should not do anything and let the system work it self out. The government can either make that gap bigger or smaller and I think if they were not to do anything that it would work out just fine. If they stay out of it then we can progress and not always be dependent on the government.
ReplyDeleteI agree will all of these comments because I believe if the government does get involve I feel there will be more damage to the GDP gap, like we discussed in class the government cant control and cant keep track of our finances, I think we should wait for things to be more balance before the government gets involve.
ReplyDeleteI believe that the government would do more damage to the economy. We have to let our society solve the problems we are facing. I personally don't want the President to solve our problems like FDR did. Our society is in baby stage so we have learn how to walk and talk by our self. It going to take a while to learn how to walk and talk correctly.
ReplyDeleteI believe the government should intervene to an extent. We have seen in the past that they can actually help, as we saw in the great depression. The government helped pull us out of the depression and helped us prosper again after a while.
ReplyDeleteI agree with alot of previous comments that the government shouldn't step in to fix the gap. I don't think that it would help if they did becuase people have lack of faith and fear when it comes to the government. The only thing I can think of for them to do is provide guidance to everyone, but there's no guarantee people will follow the advice.
ReplyDeleteIf there was a recessionary gap between actual GDP and potential GDP I think that the government should intervene because they are responsible for most of the bad things that has caused the economy to go down. There is enough tax payers paying taxes that’s why it should be worth it. Meaning when there is something wrong with the GDP or if there was to be a gap the government should act fast and intervene and try and close the gap with whatever it necessary.
ReplyDeleteI think that if there was a gap that the government should definitely not intervene. if the goverment was to intervene they could possibly makes things worse. I think the risks of government intervention is far greater than the success of closing up the recessionary gap between actual GDP growth and potential GDP growth. I think the system should let the system work itself out, if things get way to out of hand and start going downhill fast, government intervention could be necassarily. but only under those extreme conditions.
ReplyDelete-Lauren Castro
The only form government should intervene to close the gap between the potiential GDP and the actual GDP is by informing the citizens or consumers on what they should do to put their part into helping better the economy. I believe that a huge part of why we are in the place that we are today is because a vast majority of the population doesnt know what's going on and dont consume. All the government has to worry about is informing those less educated in this area instead of risking our opportunity to improve.
ReplyDeleteI think that government should at least provide some guidance to people and see wheter they follow it or not. I think thats the most the government should get involved. Also we wont now what would happen until we try it.
ReplyDeleteThis comment has been removed by the author.
ReplyDeleteI believe that government should be allowed to intervene when necessary such as when there is a gap in actual and potential GDP growth. Sure things are good when there is a free economy that is running itself but in the event of a severe gap such as a recession or a depression the government is the one to take us out of it. If we look back to the great depression it was monetary policy and some new deal policies that got America out of the rut. The overall economy is much safer when there is a back-up plan for such an event. An unsupervised economy sounds nice but when you think about it, everyone's incentives is centered towards themselves, not to how will this effect the grand scheme of things.
ReplyDeletekenny tavoc
Sorry to disagree with most of my classmates. I do believe that if the government has the ability to close a recessionary gap then they not only should intervene but they have a responsibility to. I believe that people allow governments to exist because they serve the best interest of the people they govern. That being said it is in the best interest of the people no to have a recessionary gap and for an economy to be working at it full ability.
ReplyDeleteI believe that if the government wants to intervene I say let them. I also think that it can't get any worse. There has been times where the government has pulled through and has helped in cases. The gap has only two directions up or down and I can't see the government affecting it much.
ReplyDeleteJosh Pond
I agree with the first comment, if there was a recessionary gap between actual GDP and potential GDP, I think it is difficult to say whether the government should intervene. Because even though government can grasp the overall situation, but it cannot know every detail things, so maybe government will make it worse. But I think that government can give some appropriate measures, after all, it has the responsibility to do it. At same time, the system should let the system work itself out.
ReplyDeleteSihong Fang
I think that the government should not do anything. I think that things will eventually work them selves out and that would be better for the long. I think that the government quick fixes just cause more damage in the long run.
ReplyDeleteBrian Linton
If there is a recessionary gap between actual GDP growth and potential GDP growth, definitely it is not healthy, and the problem about should the government "intervene" to close the gap or not is depending on what kind of economic model it is. In my opinion, more or less, the government should do something if it happens to give people confidence. At least the government have the responsibility to do that.
ReplyDeleteIf there is a recessionary gap between actual GDP growth and potential GDP growth, I don’t think the government should “intervene” to close the gap because the government could possibly make the situation worse. While the government is already in a tough situation with our economy, it might be best if the government leaves the gap alone. I think the government will naturally adjust in the long run and everything will fall into place as it is supposed to be.
ReplyDelete-Ashley Rice
This comment has been removed by the author.
ReplyDeleteIn my opinion, the government should not intervene in a recessionary gap between actual GDP and potential GDP growth. Adam smith said that there is invisible hand in economy. It means invisible hand solve and control the economy. If the government intervene something, they cannot expect some bad event that recession. Under this circumstance, I believe that the government should not intervene.
ReplyDelete- Sora Ko
I think that if there is a recessionary gap between actual GDP growth and potential GDP growth, the government should not intervene to close the gap because the government will make this situation more difficult and worse. The government already made our economical situation with difficulty. I think that it would be the best way that the government should remain the gap alone. I mean that if government leaves the gap alone, our economy will control and solve the economical problems well. I know that the government wants to do something to grow our economy, but I think that intervention of the government will make recession. So, I think the government does not have to intervene our economy.
ReplyDeleteMyung-Rae Kim
i believe that if a recessionary gap is not too big, the government should be better let it solve itself out. a gap between actual GCP growth and potential GDP is normal. the intervention of the government in a wrong time, it will bring bigger problem, cannot easy to handle it. the best way to solve this problem, i think, is just let nature take it course.
ReplyDeleteIf there is a recessionary gap between the actual GDP growth and potential GDP growth, the government should stay out of it. Just because if the economy is bad they would not spend money so i believe what we learn in class about the business cycle is the best choice. it will be worked out by itself with no intervene from the govt. I believe in due time it will be better once things settle down and in the first comment i agree with because people don't trust the government and they do blame every little bad thing on them. they should not intervene at all
ReplyDeleteAs many of my fellow students have said, I would not have the government intervene if there was a gap between real and potential GDP growth. In many situations the government can complicate the situation rather than help it. Economically the situation will be naturally worked out over time. Therefore, the government should not intervene.
ReplyDeleteSara Nydam
Government should not intervene to close recessionary gap between actual GDP growth and potential GDP growth. I think the reason why our interest rate is at low level is because government has controlled over federal reserve and treasure department, by simply printing out more money. I wish that government has no control over on long term interest rate and let our economy move by itself, otherwise it will be reflected on our potential GDP growth, mortgage rate, lowering in housing, and more increase in inflation rate. At this point, I don't see the sign of improvement.
ReplyDeleteYes, the government should help. If you look back on the lecture from Thursday you can see how the Federal Reserve can close the gap. Well if the government gets involved maybe they can push the fiscal policy and push the FOMC. The government is here to guide the American people and give aid when needed just not sure when.
ReplyDeleteI think that when there is a small recessionary gap between actual GDP growth and potential GDP growth, the government shouldn’t intervene to close the gap. I think that in a small recessionary gap, the economy can recover the gap itself. However, if there is a big gap between actual GDP growth and potential GDP growth, I think that government should intervene to close the gap. To recover the big gap is hard and takes long time to recover by economy itself. Actually, sometimes a government’s intervene made the gap worse and last long. However, I think that actually, to predict the economy and make it better is hard work because there are lots of variable. However, government affects a lot to economy. I think that if the government make suitable policy to economy, intervene of the government is necessary to recover the gap fast.
ReplyDeleteMinju Kim
If there is a recessionary gap between actual GDP growth and potential GDP growth, the government should “intervene” to help close the gap, but only to a certain extent. There are things the government can do to help, but they can also make things worse. The best thing to do might be to just leave the gap alone in hopes of it closing naturally. If it gets out of control the government can try to help close it.
ReplyDelete-Justin Balancio
I believe that the government should not intervene. I feel the business cycle will take care of the gap and correct itself. If the government were to intervene right now, it would slow down the economy even more due to citizens unsureness in the economy already.
ReplyDeleteI think the government should not intervene in a recessionary gap between actual GDP and potential GDP growth. Because Business cycle cannot control anyboby. Also, economy will stabilize and recover itself. If government intervene between those GDP. Situation will be worse than now.
ReplyDeleteIt's all part of the business cycle ladies and gentlemen. The recessionary gap between actual and potential GDP will close or reduce its gap when the time comes. We have been in this "recessionary" gap for years now, with or without help or intervention from the government, the gap will continue to follows its way as is. I believe that everyone as a whole can make a change or play an impact on the gap, not just what government decides to do.
ReplyDeletePlain and simple......its all part of the "business cycle."
-Ulises Ramirez
I believe the government should not step in to help close the gap between actual GDP and potential GDP. The government has no idea on how to recover the economy so they need to let the economy fix itself. However if the government had the right plans and knew what could possibly benefit the country then I would be for letting the government step in. So far they have not helped much at all. The country needs to stop waiting for the government to save them and take action for themselves and their community. Us as citizens can help with the economy, all that is slowing us down is the lack of education in this subject.
ReplyDelete-Alexandria Guerra
I dont believe that the government should intervene in closing that gap because it is true that if something does go bad in the economy then everyone just starts blameing the government. So, for the good of everyone i think that for now the government should just leave the economy to flow on its own and later if there is something that the government can do to help then it would be good to step in and help out.
ReplyDeleteAlthough I believe that the economy controls itself and that it works best when the government does not get involved, I feel that in certain instances it may become necessary for the government to become involved to help close a gap when the economy is struggling to do so on its own.
ReplyDeleteI think it is difficult that the government should intervene to close the gap. The government should just look how economy stablize. Many economists said that government's intervene is not good for economy. The famous economist Adam Smith insisted about that. Most of people know that theory 'invisible hand' i think this theory can solve this gap between actual GDP growth and potential GDP growth. I think this problem is not big, it can be solve automatically. If government intervenes wrong, the problem will be bigger
ReplyDeleteIn my opinion the government shouldn't get involved, to my sight there is too much pressure placed on it alreday in various things. I think they should let us as a big country we are solve our problems and take our own risks and therefore, learn from our own mistakes, in other words they can't always be holding our hands.
ReplyDeleteI think the government should do the best they can at trying to close the gap and not trying to do anything out of the ordinary or something new that will cost the gap to grow bigger. Or perhaps actually just let the problem come together and fix and fall in place on it's own. I believe that if the government just sit back and look and they will solve the problem without intervenes so much about it. They need to cut out the unnecessary support that the government are supporting, and taking a lot of money from the government.
ReplyDeleteI believe that the government should intervene to close the gap between actual GDP growth and potential GDP growth. I think that our economy can have the gap like a recession when it goes on freely, so the government should try to control the problem. As we know, we could overcome the Great Depression with some new deal policies. Somewhat intervention of the government would be helpful to stabilize our economy.
ReplyDeleteSang-Ah Kim
I believe government should not intervene with business and the natural growth of our nation. tension from the government onto business will put the pressure on them to still keep their bottom line while still making their goods and services reasonable to the consumer. so inturn it puts pressure on them to down size and make cuts so they dont make less money. overall affecting our real GDP and go backwards from our potential GDP growth
ReplyDeleteIf there is a recessionary gap between actual GDP and potential GDP growth, the government should intervene. Yes, I understand that it’s all part of the business cycle, but if the gap gets too big then intervention needs to be implemented. If you look into History – like some of my classmates have – you will see that in the Great Depression intervention was definitely needed. I don’t think the government should intervene if the gap is small, but if the gap is huge you better believe I think the government should intervene.
ReplyDeleteFor me, I think government should not do anything and let the system goes itself.
ReplyDeleteBecause govenment can make the bigger gap and smaller too. So I think we cannot justify government intervene is good or bad. It can be there are both side of result. So I think government should not intervene on the system.
Sanghun Lee
Everytime the government gets involve things get shitty excuse me. But i feeel like things are already screwed do to dumb government desicions. Government has the ability to change thing so much wheter they make it bigger or smaller something will cause an error to the GDPgrowth so with that being said screw the government and let it work on its own !
ReplyDeleteAt this point I think it would be wise for the Gov't to intervene...I would love to see Obama and the other members of the cabinet begin to put some public works projects in the making. Not only would it help alleviate the unemployment rate but it could also make us quite a bit more self sufficent if we used our resources to fund solor energy fields or more wind turbines...I could use something to look at on my way to Vegas.
ReplyDeleteI agree with what many of my classmates say. I do not believe that the government should intervene with what is going on in the business cycle. From what I learned in most of my classes in Economics the business cycle functions in its own way so it would be difficult to predict a recession at an early time. Sometimes the government just has to let the economy flow the way it is going to go because to be honest sometimes we do not know we hit a recession until it actually hit us. That is my opinion on this matter.
ReplyDeleteBy Priscilla Leon
I feel that the government should intervene in certain scenarios. We can't predict recessions, and philosophers would argue that this is simply just a temporary imbalance and things will flow back to our normal economy status. I do agree with them in this case but I believe the government should have intervened in the housing market. For example they cold have put caps on the amount of loans brokers could provide or increase the Federal Fund to limit amount of exchange amongst bankers. However, that also contradicts the idea of free markets, but maybe it could have helped our economy to begin with. In most minor cases though, I would have to agree that the government shouldn't intervene. On major cases, I feel that they should on some level.
ReplyDeleteThe government should not intervene and just let the people take care of it. There is so little that the government can really do.
ReplyDeleteThe government should intervene between the actual gap and potential to maintain the stability of the business cycle.The government usually stimulate by setting monetary policies so if there is a big or a huge gap between potential or actual gap it will indicate that the government should change its policy in order to reduce the gap.
ReplyDeleteEverything in life consists of proper balance. For example, making share you balance out your studying time, making sure you balance out your work schedule according to your school schedule, etc. With that said, I think the government should intervene in a balance manner. It shouldn't try to seize absolute control nor should it not help in time of need.
ReplyDeleteI believe that the government should not intervene if there were to be a gap between actual GDP growth and potential GDP growth because it seems that they tend to make things worse and complicate everything. Eventually the economy will settle itself out over time.
ReplyDelete- Ashley Ignacio
i dont beleive the governtment should get involved if there is a gap between actual GDP growth and potential GDP growth because they will only mess it up and make matters worse.
ReplyDelete-german coreas
I do not think the government should intervene to try to fix the gap between actual and potential GDP because it is only going to get worse. I agree with my classmates that people will only fear the government causing an opposite effect.
ReplyDeleteI don't think the government should intervene to try and close the gap. They should just let it runs its natural course. A gap should be expected from time to time and if the govenment tries to get involved each time it would only get worse. In addition the govenment should not be wasting efforts trying to fix something that will work itself out when there are plenty of other important issues out there that could use govermnet attention.
ReplyDeleteTo be honest, I believe that the government should not intervene in closing the gap. The government always has to get involved in everything that's happening and eventually thing will work themselves out. Something bad is bound to happen if they should happen to get involved. Things should have the time to figure themselves out once in a while.
ReplyDeleteI also believe that the government should intervene to an extent. We have seen that government intervention could help certain situations. 2 Good examples are gas shortages during the Nixon years, and the Great Depression. I also believe that too much government involvment could cause the problem to grow. There is a fine line between the right amount of intervention and too much government involvment.
ReplyDeleteIt is necessary on certain situations for government to intervene. It is when the gov intervenes too strongly that causes problems. I am a believer in the invisible hand and I think that the economic problems will eventually work themselves out through slight gov intervention.
ReplyDeleteI believe if there is a recessionary gap between actual GDP growth and potential GDP growth, the government should step in an help the situation. Also the government should have restrictions of what they should and should not do because too much government is not healthy. For instance, there should be a balance on what there restrictions are on helping the situation because there needs to be a balance in everything. Like homework the more you do the easier to understand the work. I believe they should help but to an extent. In are recession now I think the government should just control it not fix it. This would limit the downfall of the recession.
ReplyDelete-Kenny Pigman
If there is a recessionary gap between Actual GDP Growth and Potential GDP Growth government should intervene to close the gap. Fiscal Policy: HIGHER GOVERNMENT SPENDING + lower taxes= EXPANSION
ReplyDeleteIf there is a recessionary gap between actual GDP growth and potential GDP growth then the government should intervene to an extent to try and close the gap. It's treading on rough waters, because the government should try to maximize the potential GDP growth, but it should also let the business cycle work itself out again. It's a tough balancing act and the government can only do so much to intervene. The government can pump money into the system and try to close the recessionary gap, but if the citizens aren't spending money than it won't do any good. So the governement should try to close the gap, but at the same time let the system and citizens try to close the gap itself.
ReplyDeleteI believe in the saying that the business cycle will fix itself but I also believe that the government should only intervene in the business cycle only and only if the gap of actual GDP and Potential GDP are at a point where our economy cannot further sustain itself.
ReplyDeleteIt’s difficult to say whether or not the government should intervene to close the recessionary gap because we’ve never had a recession quite like this in our history to draw from. I would normally say the government shouldn’t get involved in closing this gap. The government already spends far too much money on programs and other projects than they should be spending, and in some situations, the government could potentially make things worse. For some time I have held the belief that markets work best and governments don’t. However, with that being said, without government involvement and the spending during World War II, I think the great depression could have continued much longer than it did, causing much more damage. Through time the business cycle will sort itself out but the question is, how much time will it take? People are choosing to hold on to their money instead of spending it on goods and services, because they are fearful and uncertain of the economy, so this almost leaves the government no other choice but to continue spending hopefully creating more jobs. If something can be done in the short run to close the recessionary gap, I think that will be beneficial but after the gap closes, the government needs to seriously cut back to help economy. Unfortunately, the government seems to have a hard time doing this.
ReplyDeleteI believe that the government should step in and help close the gap. That's why we have a government in the first place, to help keep our country safe and stable. Sure the government has made mistakes, but look at all the good the government has done. Without government involvement our country would not be a powerhouse in this world that is today. Plus what IF the economy doesn't stabilize itself or what IF it takes decades to stabilize itself? I doubt the government would do more harm than good at this point like some people said above. I also read someone's blog above where they said the government is to blame for the recession. Wrong!! People buying houses they couldn't afford caused the recession, among other factors, but the government is not 100% to blame. Of course not everyone is going to agree with the government's decisions all of the time. But for all the people who bash our government, I have one question for you...why don't you get a job for the government and make the decisions if you're so much smarter? Rather than just sit back and ignorantly blame the government for everything.
ReplyDeleteAlthough economics discusses government spending and lower tax rates increasing growth some decisions made by our elected officials have seemingly robbed us, bail out money did nothing for the good of the common man, the money spent could have been better served and the mortgage intervention spending did nothing but help banks they chose to help. Federal government has only created problems by intervening. To get back to the mortgage intervention, yes interest was at an all time low but the cost of housing was at an all time high, so the market was a fools gold to the common man and a true gold stock to men like Charles Keating. Political Societies intentions are to feed them selves off the dime of the commoner.
ReplyDeleteIsmael Navarro
I Believe that the government should only intervene if the gap of actual GDP and Potential GDP are at a point where we as an economoy cannot fix it ourselves. But i do believe that the business cycle will work itself out without the help of the government
ReplyDeleteAlrighty, after discussing this stuff in class, I'm willing to swallow my own personal feelings and say that the Government intervention may have done what it needed to do (stimulus) to keep this recession from turning into a complete catastrophe. My problem with it is, us from the working class aren't retarded. This shattered economy was built up on the backs of people being horrifically irresponsible, the Government has gone about picking up the pieces, but the bottom line is, we're going to get stuck with this bill. The Gov spent nearly a trillion dollars and my life was totally unaffected. However, the only thing I'm sure to see in the future is higher taxes to deal with the debt. I think the Gov should have intervened and clipped taxes to all time lows to increase spending, and had a plan for graduated increases in the future, back to "normal". Fear and uncertainty about the economy, along with the fear of higher taxes in the future to pay back the checks the Gov wrote put a lot of people I know in the position of holding on dearly to every dime. I don't think the stimulus increased the spending curve like it SHOULD have. I just don't think the Government knows best how to spend our money. Give me money, and I'll spend it on something fantastic :).
ReplyDeleteLots of great posts up there! Shout out to Mallery (clear points thoughtfully conveyed) and Mr. Beitzel...subordinating your personal feelings is admirable! However, you made valid points as well. The nearly $1 trillion surely has not benefited Southern Californians much...yet, we are all hear dealing with the fallout still.
ReplyDeleteI believe that the economy can get on the right track eventually without the government intervening. The economy works as 'roller coaster' sometimes we are at the top peak, and soon after that we are at the lowest point, and slowly make our way back to that top peak again. If the government tries to intervene in the cycle, they could most likely make the economy worse, and the citizens are already putting the blame on them for the problems we have been facing.
ReplyDeleteI don't think the government should intervene if there's a recessionary gap between GDP growth and potential GDP growth because they might just end up doing more damage to the economy. Eventually the economy will stabilize itself. Unless the economy is really in deep recession then that's when the government should intervene. It all depends how bad the situation is because we don't know how long the recession is going to last. It's best to wait and see if the economy can get back on track on its own, if not then maybe the government should try to intervene and see if they can improve things.
ReplyDelete-Daisy Guan
At first, it is truly hard to discern whether the government should intervene in an attempt to close the possible recessionary gap between actual GDP growth and potential GDP growth. As many others believe, I too can see the pros derived from this course of action if the market should attempt to correct itself, however, with hope that a series of positive “real shocks” will rectify the process at a faster rate. We are living in an age where technological breakthroughs are not only increasing at a far more reoccurring rate, but on a much larger scale than before our time. It is only a matter of time before the “next breakthrough” alters the way we work, grow, spend, and live, will help the market decrease the gap.
ReplyDeletei think that the government should no longer intervene, because it has done enough damage already. i have to admit that the government's stimulus package actually saved the economy from being much worse. With that being said it was also the government who decided coincidently to start paying interest on reserves which has banks holding more reserves and not making the necessary loans to get our economy back on track. it is also the governments fault our deficit is soo big, and it is the citizens of this country who going to have to pay for all this spending through taxes(which i hate with a passion, as im sure any working person does.)
ReplyDeletei believe that if there is a recessionary gap between real GDP and potential GDP the government should intervene. as much as we say we don't trust the government, businesses and the government can work together to fix problems which in my opinion will be better off then if we just wait things out.
ReplyDeleteI think that the government should intervene if it does it in the right way. There can be pros from the government intervening. But I also believe that the government should be efficient so this should be done in the most efficient way. The private sector may be able to work itself out but I do think that there is a time fo government intervention.
ReplyDeleteIn my opinion I don't think the government should intervene because they might think they are helping in the short run but in the long run it can be more damaging. Trying to help close the gap could potentially make the gap bigger so I don't think the government should intervene.
ReplyDeleteI believe that the government should not step in. Eventually if everything else runs smoothly, the gap will work itself out. It almost always does. and by not intervening they are helping us grow for in the future.
ReplyDeleteMy personal opinion would be for the government to not intervene to close the gap between actual GDP growth and potential GDP growth. This is because it will help for the future times when there is a gap and it will work itself out.
ReplyDeleteI believe that the government should close the recessionary gap because they do have the ability. It is also their responsibility to do so. If the government were to jump in, I don’t think it would effect it anymore then it already is. It make herlp it but I don’t think it could make it any worse.
ReplyDeleteI'm not too sure... I would say that the government would know best, by that I mean the true government, that's there to protect the interest of it's people, not giant corp. who get hand me outs when stuff hits the fan. I know many believe that the markets correct themselves, but I say if those who are specialist in the field see an opportunity that exist to correct the issue, then let them do their job.
ReplyDeleteWhat the goverment needs to do is to stop cuting the public education budget and start getting jobs in the Inland Empire due to the high numbers of unemployment and then when thousands of jobs are created only then raise taxes to reduce our deficit, we also have a gas price problem that needs to be fixed that can reduce the recessionary gap to spend money on the right stuff not on the wrong stuff that increases the deficit.
ReplyDeleteI believe that the government needs to step in and make some sort of effort to help encourage people to get back into spending. They have made some efforts but people are still fearful, and fear is not going to get the economy anywhere other than into more of a recessionary gap. It's sort of a team effort effect that needs to take place, the government can only do so much before we have to take our turn and catch the ball, and not doing anything probably won't get us very far either.
ReplyDeleteI think government can do is little thing because doing something is Media and people. we can see everytime that actual GDP and potential GDP have gap between them in CNN or other news channel. After we see our GDP is increased, we expect that our economic life will be good. However, actually, It is not. When people think like this, government should do 'little things'. Goverm. cut down taxes or prices for a while to make people purchase goods and use their money, although taxes will be increased again. I think it is the only thing that goverment can do.
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ReplyDeleteIf there is a recessionary gap between actual GDP and potential GDP growth I believe that the government should give it time for the recessionary gap to close. Either people will start spending more which will close this gap or if nothing happens during that time period then the government should step in and give incentives to have people spend. When people spend and a lot of money is in circulation the economy tends to fix itself. This is the only time that I can see the government intervene to close the gap.
ReplyDelete-Moises Lizama
I feel that this question is subjective and that there is no right or wrong answer. To me, it would depend on how big the gap was and how long we were in it. I think that the government should intervene if the gap was large because it would probably needs some help to overcome some of the sticky prices and wages that would occur.
ReplyDeleteFor the most part i believe the government should not intervene. We need to take matters into our own hands and close the gap ourselves without the governments help if that doesn't run smoothly then and only then should the government get involved.
ReplyDelete--Oakford Gross
Wow, this is a difficult decision to make. It is also scary to do. It is hard to say wheteher the government should step in or not. I do not know no more if the governement does good things or bad things for us. Since they are the once who take all the actions. I will make a choice, I will say NO, the government should not step in because they have done choices in the past I do not agree with. Like I think we mentioned in class, too much governement power equals slavery.
ReplyDeleteI think that the Gov need to help keep the economy in check. so yes the gov may need to step in if there is a gape that is large but if there is a small gap no the market will fix it's self.
ReplyDeletei think the the government should intervene if the growth is to large then they cant just sit there and just let it happen. The government should really should do something, i think that they could really help if the market is to down and gdp gape is to large.
ReplyDeleteI agree with what some of other students said. In my opinion, the government should stay out of it for a wail and see if the problem could fix itself. If it can’t fix itself than the government should step in, it’s like keep it toured the end but first give it a chance.
ReplyDeleteI believe that the government should step in but not necessarily close the gap but to guide the market in the right direction and watch over it to make sure things are moving more towards a positive outcome.
ReplyDeleteIsmael Bejerano
I believe the government should stay away from the gap and not get involved. Let the "invisible hand" do its job and the economy will eventually sort itself out. Many people don't like to hear that because they want solutions and results now for our recession. But i think big systems will take awhile to resolves themselves. But we've gotten out of the hole before and I don't think the government can save it with any rules or regulations.
ReplyDelete-Nicolette Afable
If there is a recessionary gap between actual GDP growth and potential GDP growth, should the government "intervene" to close the gap? Why? Why not?
ReplyDeleteI believe that the government should defiantly intervene to promote economical stimulus by establishing policy that reduces tax's to entrepreneurs therefore helping to create more Jobs, which is what the economics really needs. If the government is not preforming to its full capacity then we can assume that the government is sick. To provide medication for our sick economy we will have to establish a modern economic system that is better able to deal with our new global and instant economy.
I do believe the gov should help. The federal goverenment clearly has the ability to close the gap and if they get involved maybe they can help change things. Pushing the the fiscal policy is one of the simple things they could do. Part of the problem is the government is not stepping in when we, the people, feel like it is necessary and instead are trying to aid in unnecessary ways.
ReplyDeleteYes the government should intervene because they are in control of our money. They need to either increase or decrease the money supply or increase or decrease taxes
ReplyDeleteI dont think that the governent should intervene.
ReplyDeleteWhat goes down must come back up and I think that theres very little that the government could do besides spend a little more money.
Weve gotten stimulus checks, and the gov. has been working on projects such as fixing the streets/freeways in order to create new jobs, but even those jobs are temporary. Besides the fact that people are so sceptical and untrustingof the gov, to add some new proposal would probably leave a bad taste in people's mouths. I think these little steps could help, but as far as any HUGE bill being passed or any HUGE moves being made, its a little too late.
I think it is difficult to say if the government shoudl intervene. When you look at this question you view the things that the government can do when this is occurring during the recessionary gap because there is very little that the government can do. All the government can really do is spend more money but that in a recessionary gap does not mean it will improve the economy. Not just is the recessionaty gap effected but you also have to apply it to your business cycle. This is my believe on this topic.
ReplyDeleteBy: Adan Garibay
I don't think the governement should intervene. As we learned in class, even if they did intervene and tried to implement policies to fix the gap, it could take years to carry out and by then may be useless. I believe that in time it will naturally correct itself, without any intervention from the government.
ReplyDeleteI agree too that the government could do more damage then harm at this point. It will take time for an improvement and I don't know if the government could do too much to heal it at this point. As we learned in class, the economy always tries to return to normal. I believe that eventually the economy will eventually fix itself. Government intervention might cause more problems. I feel it is like the banking industry a few years ago. Even though there was government intervention, many companies still went under but at the cost of government money.
ReplyDeleteI believe that the government should intervene in the way of enforcing new regulations. I think a good idea of enforcing regulation on banks, insurance, and wall street can actually help out alot. The reason is that sometimes therse large institutions take advantage of the system and benefit from weak regulations. For example , the housing market was manipulated by large banks benefeting from stacked home mortages. The breakdown of the housing market could of been prevented if the government had intervened. Many of the large CEO.s WEre never arrested or penalized for their mistakes.
ReplyDeleteManuel Marroquin
003717102
I think the gap will eventually close on its own sometimes when the government gets involved it could do more harm than anything. That’s not saying the government couldn’t partake a little more in trying to stimulate the economy, by lower taxes or other sorts. If we give it time and the government gives it a push now and then the gap will close. It’s hard to say either you want the government to be involved or you don’t. I think the government should be on their game and if they see something they can better they should do it. But not focused something, it could just make things worse.
ReplyDeleteThere's always an opposition to government intervention, but I think the government should be able to "lift" us out of bad situations when deemed necessary, not so much as to babying us the whole way through. Right now, even with our economy the way it is, and all the international issues going on in Libya and Japan, as long as we don't see a severe decline, we should wait it out and see it stabilize itself.
ReplyDeleteMaybe government should intervene in the way that we have more regulatory policies to police banking activity so we don't get into this type of situation again... the opposite of de-regulation.
Its a tough question, but I think the government should let the economy try to work itself out before stepping in. I feel that more government spending should be the last resort and should only apply when all else fails.
ReplyDelete-Desmond Ratliff
The government cannot control every single person in the US. It could try and predict that actions based on past tendencies, yet it will not force residents to respond the “correct” way. Some people would go crazy and start protesting if the government tries to intervene too much. That said, I believe that the government should give it some time and could aid a little but not too much.
ReplyDeleteA government can only do so much to help close the gap between actual and potential GDP growth. Consumers must also try to close the gap and thus, government should not intervene; let nature take its course.
ReplyDeleteashley ortiz