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Free markets and the governments bail out
What is the relationship between free markets and the liberties promoted and protected by America’s republican form of government? What level of federal and state government regulation is necessary to ensure the safe and ethical conduct of business? At what level of regulation does the market begin to suffer and under-perform? [These last two questions call for speculation, extrapolating from the economic principles outlined in our readings and employing your own critical thinking skills.] Should, as a rule, the federal government “bail out businesses experiencing the kind of financial crisis that would otherwise lead to bankruptcy and insolvency? If your answer to the last question is “no, should exceptions to this rule ever be allowed? If so, under what conditions?


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