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HS Economics Paper

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wchasewt09 posted on Sun, Jan 25 2009 1:49 AM

What impact will the government ownership and involvement of the last 12 months have on our Free Enterprise system in the short run and long term?

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If I knew that I'd be investing in the right companies.  And that's the problem with central planning.  You're rewarded based on how well you can guess where the government will jump next.

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Huge inflation as debt is monetized and the reserves banks have are lended out, riskier investment decisions by financial institutions as they realize that they have a greater chance of being bailed out, slower economic growth as financial/capital markets become regulated more and thereby slow investment, and a longer recession as past malinvestments are liquidated at a slower pace due to government intervention.

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