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Should the US government cut spending after the 700 billion dollar bail-out goes through?
If the bailout package is able to successfully revive the US economy then the US government should cut spending on the bailout. But some financial experts feel this 700 billion may not be sufficient. If what they predict becomes true then the government would have to pump in more cash into the bailout package. This bailout cannot be left in midway because the future of the world and US economy lies predominantly on this bailout and people are hoping that this works out successful.
How will the US government's 700 billion dollar bailout affect the GDP and the unemployment rate?
It is unclear the affect the bailout will have on GDP and unemployment. GDP growth has the biggest impact on employment so how the economy responds to the bailout is the critical factor, If credit markets loosen up and credit begins to flow again it will have a very positive impact on GDP growth. In that instance the impact of the bailout will be a reduction in unemployment.
How will the bailout effect us in the future?
The bailout can have both short-term relief and long-term implications. In the short term, it may stabilize the economy and prevent job losses, fostering immediate recovery. However, in the long run, it could lead to higher national debt and potential inflation, which may affect future government spending and economic policies. Additionally, it may set a precedent for future bailouts, potentially encouraging risky behavior among businesses.
Who needs the 700 billion bailout plan?
1. The banks and financial institutions in US 2. The US Economy 3. The world Economy In short - All of us.
Why are you having a federal bailout?
The Reasons for the Bailout Package: 1. To Stabilize the economy 2. Improve Liquidity 3. Improve Investor Confidence 4. Reduce the impact of the financial crisis on the US Economy and GDP.
What are the main objectives of the 700 billion bailout?
1. Bailout is a mechanism to strengthen banks' balance sheet so that their credit rating will not deteriorate thus not requiring to pledge additional asset to creditors. 2. It is also a mechanism to safeguard banks from panic withdrawal from depositors. Bailout comes at a cost (a very huge cost), in dollar term, it was estimated that the whole bailout plan will cost every man, woman and children in the US $2,300. For more information, visit: http://leonardatavism.blogspot.com/2008/09/some-thoughts-for-us-bailout-plan.html for The main objectives for the Bailout Package are: 1. To Stabilize the economy 2. Improve Liquidity 3. Improve Investor Confidence 4. Reduce the impact of the financial crisis on the US Economy and GDP.
Who inserted the 2008 bailout earmarks and who did they benefit?
The US Senate. The bailout plan is intended to help the struggling financial institutions of the US and provide them with cash (in return for the illiquid assets they have which they cannot sell in the open market) which can be used to revive the fallen economy. At a later point of time the US Fed reserve may sell these assets back to these banks and recover a part or the full bailout money.
What country affect the us economy?
All countries affect the US Economy in some measure, but particularly Japan, Britain, Canada and Mexico.
What is the connection between the huge bailout in the US and the upcoming elections for a new US president?
Actually there is no correlation between the bailout plans and the US elections. The plans were initiated by president George Bush to help the economy to recover from the crisis. Though he wasnt in the race for the president post, he initiated it and hence there is no basic connection between the two.
How is bailout supposed to help the struggling economy?
The aim of the bailout plans, stimulus packages etc are to purchase bad assets, reduce uncertainty regarding the worth of the remaining assets, and restore confidence in the credit markets. The bail out plan is expected to 1. To Stabilize the economy 2. Improve Liquidity 3. Improve Investor Confidence 4. Reduce the impact of the financial crisis on the US Economy and GDP.
How did the world war 1 affect the economy of the US?
it caused the economy to go down
How Is the US Economy Doing?
right now 2009 the us economy is in a recession, but could in a depression later on in the future if we are in a recession for too long.
