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3 Things Economists Are Saying About the Bailout Bill

What Economists Are Saying About the Bailout Bill

Economists around the country are saying that the new bailout bill still needs work. However, they say that it is still better than nothing. Economists all agree that something needs to be done to help revive our struggling economy.

Everything is being affected this. Consumer spending is drastically down. Stocks are at a record-low. The auto industry is suffering. The mortgage industry has never looked so bad. Last week, a group of over 200 economists sent a collective letter to Congress. This letter expressed their “shared concerns” about the bailout bill. Some economists are still skeptical that the plan will really work. These university economists and finance professors from around the country don’t think the bill will actually reverse that damage that has already been done. Their concerns are founded upon three basic issues.

1. Fairness. These professionals don’t think that it is fair that the government bail out these business that have proven to have poor business practices.

2. Ambiguity. There is a lot of concern about the detail that is being provided about the bailout bill. Nobody has really been given any information as to the specific logistics of the plan.

3. Urgent action. Some wonder if urgent action is really necessary. The argument is that the urgent action that is being called for will actually weaken our financial system in the long run.

For the most part, economists agree that the current plan is better than the first plan. However, there is a lot of skepticism as to whether or not the plan will really work. The government plans on buying these troubled assets, holding on to them until the markets get better and then sell them. The problem is that the markets are so bad that no one knows how much these assets are really worth.

The hopes are that the value of these assets will become more clear. But, there is no guarantee to that. The entire country will definitely be watching to see what the House of Representatives votes tomorrow. Unfortunately, no one knows for sure what impact the bailout bill will have on the economy. Hopefully, the government’s intentions will be met and this country will begin to recover from this horrible disaster.