Do Current Conditions Warrant More Government Intervention?
The 2008 calendar year posted some of the most dismal economic figures in decades. Led by troubles in the housing market, fiscal woes spread to the banking and lending industries and then to the stock market. Unemployment statistics made a steady climb and capital for new business and consumer purchases dried up during the year. The U.S. government quickly pumped money into the system through a series of stimulus and bailout packages, all of questionable value in helping the economy recover. Currently, the Senate is debating the newest proposed stimulus plan, already passed in the House. Here’s a look at the state of the current housing market as well as the plan Congress is devising to encourage greater economic growth. Housing Starts The number of housing starts in the latest quarter fell by a 50-year record low percentage, with the total of all housing starts falling 33.3 percent for the year and the number of single-family housing starts dropping 40.5 percent during the same time.
