Question

1. We had a few government bailouts in 2009. We’ve had a few government bailouts in 2020. Was Keynes right? Should the government interfere with the free market? Should the people have gotten more than $1200 one-time payment? Explain. Why should big corporations and the wealthy get bailed out and the people get a one-time $1200 payment? Explain

2 Who do you think will be the next country to rival the United States? Or will there be another country that can rival the United States?

Answer 1

Government bailouts are necessary for the situations of economic crisis. One such situation was the Great Depression. Thus the government should play an active role in the working of the market such that the whole economy is not turned to a market oriented economy with least scope of social justice and welfare of the society. Thus Government interference is required in the free market too.

However, injections should be limited to such an extent such that the big corporations dont get bailed out everytime they go through an economic crisis. Doing this would ensure lesser incentive to run into crisis and making them self sufficient. Thus this explains that the one time payment of $1200 and government bailouts are important too.