Topic: Should the government spend money to prevent a depression?
America has been considered the most powerful country in the world with splendid economy. However, in recently years, the signs of a depression seem beginning. The question is posed that “Should the government spend money to prevent a depression?” In my opinion, I response that “yes, the government should” because of these causes following: balance the economy, stimulate the economy, and prevent a depression not only for America but also other relative countries.
First of all, according to balance the country, these days, more and more companies have got to make the bankruptcy because of their business failure. This means thousands of people lose their jobs. Without jobs, they can not pay their debt, and they get in poor. In addition, when people can not produce money, they will not spend much. This leads to low consumer demand on productions, of which the cause of depression. No thing else but a chain reaction in chemistry, business failure, poverty, debt, crime, etc. The problem comes back to the government. It has to something to solve this out. One of things is that the government is supposed to put money on failure companies to bring their business back and keep them on. When these companies are going well, this means, people can take their jobs back. They can pay for their debt, buy houses, save money, or spend money on whatever they want. Furthermore, when life is going up, the consumer command is higher. Banking and other service are going to improve. The cycle of procession starts again. The economy balances, then there is no more depression.
Secondly, a way to prevent a depression that government stimulate the economy. As we know, the cause of depression that is low consumer demand. The consumer will buy if he gets more money. Thrift sometimes is very bad for economy. It makes available money while production fails to meet consumer demand. The government may encourage...