Do you think the economy really needed the Government or would capitalism fix itself?
Capitalism can fix itself if allowed to work. However, in a pure capitalist system there are economic cylces with booms and busts. When busts occur there are major business failures and massive unemployment which can take a long time before the system finds a new equilibrium. In today’s world, no one wants to face the pains associated with economic busts. Since the 1930s governments have intervened in the economy to iron out the business cycle. That’s the world we live in today and the reason for the massive interventions by the Bush and Obama Administrations to bail out the banks, financial institutions, and the automotive industry.
