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Politics : View from the Center and Left
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To: Katelew who wrote (129392)1/27/2010 12:06:01 PM
From: Cogito  Read Replies (1) of 542059
 
>>Another reason is that the government has no way of really knowing whether or not a company is well-managed or not when it tries to prop them all up. Strong companies tend to survive recessions on their own because they have prepared for the inevitable downturns. They have money set aside, or have hired well, or have solid inventory contol systems in place, etc. So to blame a business failure entirely on a recession is mistaken.<<

When I speak of government action to prevent recessions becoming depressions, I am not speaking of rescuing specific companies. I don't think that's a good idea except in rare instances.

You say you don't remember any government intervention in recessions, but it happens all the time. The Fed raises and lowers interest rates, and controls the money supply. When they lower rates to less than one percent, they are attempting to keep slowdowns from becoming recessions or depressions.
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