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Question: There have been significant discussions on the government's fiscal policy during the Great Recession. In particular, many did not like the government's actions in salvaging the auto industry in providing guaranteed loans to GM and Chrysler. What is your opinion? Provide economic reasons for your opinion.

Answer: In my opinion, I believe the decision to bailout GM and Chrysler during the Great Recession, overall panned out to be a good one. Although it might of been unfair to taxpayers since billions their dollars were needed to fund this bailout, and unfair to other large corporations such as Ford, who were struggling but not to to the extent of GM, ultimately ended up saving millions of peoples jobs. Since the economy was already in such a tough spot, the magnitude of GM and Chrysler going out of business would have had an even larger effect on the economy. The unemployment rate would increase, causing even less money to be circulating. This could have potentially put the U.S. in an even worse financial situation, and had long term ramifications on the country by losing such a large domestic company. Instead automakers and workers in the industry were able to keep their jobs, and again within time the company was able to become profitable.

Hartman, M. (2018, November 14). What did America buy with the auto bailout, and was it worth it? Retrieved October 19, 2022, from https://www.marketplace.org/2018/11/13/what-did-america-buy-auto-bailout-and-was-it-worth-it/