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History 7 Online
OpenStudy (anonymous):

The financial crisis of 2008 led to massive federal spending in an effort to stimulate the economy. The combination of the new federal spending and the automatic stabilizers led to: (a) the largest budget deficit since World War II. (b) the highest rate of inflation since the Great Depression. (c) a higher government debt-to-GDP ratio than at any time in American history. (d) a deficit that is expected to remain permanently at ten percent or more of GDP.

OpenStudy (kenljw):

The Federal bailout was not to stimulate the economy but to save it. If banks had gone under the Government would be responsible for peoples savings, through insured accounts. with no way of recouping the social structure. What became evidently needed what tighter regulation of banking investment which didn't come about due to corporate control of government. The automotive bailout again, was done for Chrysler in the 80's, was to save the US industry but what eventually happen was outsourcing to China and other countries, NAFTA, which only really left management and engineering positions with some skilled labor jobs. This is why Detroit in going bankrupt having lost it's industry base leaving few jobs in the area. I'm not sure what the automotive industry agreed to in this bailout but FORD did not accept the government terms and did not accept bailout. The only stimulus I've seen is for real estate, lowing interest rates for those on verge of foreclosure. The real estate bubble occurred because in the last thirty year inflation had doubled, hence property, but real wages had stayed the same and really no one could afford the price of these homes. In fact I've seem commercials that said if your home has lost half it's value you may qualify for a new low interest loan, these loans are still for inflated value and the government/banks would rather see you pay it then take the loss and have to sell at half price. This did little to stimulate the economy except for the housing market, new construction and sales. In answer to your question it can anyone except c, inflation has generally remained flat for the last thirty years, but at 2-3 % it does have its effect over time.

OpenStudy (nurali):

i think the largest budget deficit since World War II.

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