When we hear in the news that banks are suddenly closing, we know that there really is a problem with the money market systems and capitalism in our world today. These problems cannot be simply solved through the government’s use of the taxpayers’ money pumped into failed businesses, failed insurance brokerages, and failed banks. The government does not see that the problem is not surface-level. The economy is facing problems such as corporations engaging in fraudulent trade and banks buying and selling bad debts.
Bankers and gamblers are just making money out of the people’s taxes, using millions of government aid for their personal gain in what is referred to as the corporate ponzi scheme. There are only losses, and no real profits. For instance, a credit crunch happened when bankers distrusted one another. There were also very big companies that would have already been closed if not for the government who provided help. These things occurred on a worldwide scale. To prevent the coming of another 1930’s Depression, the government is shelling out almost trillions in money to bailout the economy.
Even with funds shelled out by the government to solve the crisis, problems are not yet resolved because of the build-up of corporate debt, personal debt, and government debt. The government is only avoiding the real issue rather than solving them that is why the economy still faces a lot of financial problems. There are a lot of people who are unemployed and businesses are also declining. In Britain, there is deflation even though the British government is printing a lot of money.
The government wants people to spend their way out of the problem. This is clearly not the solution because in the first place, spending—living beyond one’s means and cheap money— was the cause of the whole problem. People who saved are punished for saving. This is definitely not the proper way of running an economy, where wrongdoers are rewarded and honest individuals are punished.
People think that the worst is at its end and that the world is finally recovering from the worst depression since the 1940’s. The truth is that we are still far from solving the worldwide crisis as long as the government refuses to address the real issues.