Category Archives: Week 15: Great Recession

In Ages of American Capitalism, Jonathan Levy explains how the Great Recession of 2007 challenged many long-standing beliefs about capitalism in the U.S., especially the idea that free markets are the best and fairest way to run the economy. Before the crash, many people believed that the government should stay out of the economy asContinue reading “The Great Recession”

The great economic rapture, as I am calling it, did not start with the Great Recession but this moment in time marked a change from the conservative consensus to a government interventionist model. Obama was the facilitator in this change not only with policy but also with rhetoric. For example, during his campaign Obama highlightedContinue reading “Economic Rapture”

Although there perhaps was a departure from the conservative consensus in terms of the opinions of the public, the Obama administration did not represent a departure from the consensus. This is mainly because the Obama administration, instead of developing a new way for the American economy to work, mainly put forth changes to reinstate theContinue reading “The Obama Administration’s Response to the Great Recession”

The response from the Obama administration to the 2008 financial crisis used indirect government intervention to prevent market forces from putting the large banks and financial titans out of business. The government decided to bail out the hegemons of the financial world, such as Wall Street and big banks, choosing to retain the status quo.Continue reading “The Power of Financial Institution During The 2008 Recession”

In many ways, the Obama administration’s response to the Great Recession of 2007 and 2008 was a continuation of, rather than a break from, the conservative consensus that had dominated U.S. economic policy since the 1980s. The crisis did challenge the faith in deregulated markets, and prompted questioning of the idea that markets naturally allocateContinue reading “Continuity in Crisis”

 I think the Great Recession of 2007-08 shook many of the central tenants of the conservative consensus =-namely, a faith in markets as the most fair allocator or resources and pursuing deregulation to achieves economic growth nin way that we believe what wwas best for that time and how we can use for the greaterContinue reading “How did the technology of the Great Recession change in 2007-08?  “

Historian Jonathan Levy writes, “what most distinguishes the Age of Chaos is a shift in what has always been capitalism’s core dynamic: the logic of investment, as it works through production, exchange, and consumption” (Levy). After the Volcker Shock (named after the chairman of the Federal Reserve in late 1970s and early ‘80s), the UnitedContinue reading “New Horror Site: Zillow in 2008”

During the recession, Obama continued Bush’s policies of bailouts for financial institutions. This goes to the economic principle that stabilizing markets was important for economic recovery. On page 593, Levy says, “Meanwhile, through the TARP, the Treasury Department injected public capital into the largest US banks.” This helped to slow the crisis and promote publicContinue reading “Week 15”

With the 2008 recession and the election of Obama, the conservative consensus was shaken. Obama ran on a financial platform that diverged from previous administrations. He campaigned against the “Bush economy” and wanted the federal government to have a role in ending the financial crisis. He believed that it was the responsibility of the governmentContinue reading “The economy or something?”

The Obama administration moved towards liberalism. In Levy’s article, he says that the administration tried to stabilize the economy instead of trying to reform the economy. The Fed and Treasury have so much power in the economy policy-making is because they believe it is too complicated for direct political control. The main reason is theContinue reading “Ages of Capitalism”