The Research Paper is based on the ideas in Roubini and Mihm’s Crisis Economics.
Length: 20 pages – at least 5,000 words.
Please note that while you learn in Crisis Economics about various ways of responding to financial crises and their effects, this paper is not a review of this book or analysis of the concepts discussed in it. Instead, using one or two themes addressed in the book, you are expected to provide a comparative study of the American government’s responses to two crises, the one triggered by the Wall Street collapse in 2008, and the economic crisis caused by the COVID-19 pandemic in 2020-2021.
Please answer the following:
Compare and contrast the US government responses to the economic crises of 2008-09 and 2020-21. In the case of the former crisis, first the Bush, and subsequently the Obama administrations issued massive bailout packages for Wall Street firms. In the second case, first President Trump, and then President Biden authorized massive stimulus packages for the American people. Which of these measures responded more directly to structural deficiencies of capitalism, and why? Which of the following schools of economic thinking, Keynesian, Austrian, and Marxist, best explain the American government’s responses to these crises, and why?
To help frame your thesis please consider the following:
What are the deficiencies of capitalism?
Compare the bailout package of 2008-09 to those of the 2020-21 pandemic. Which of the two bailout packages was better designed in terms of addressing the structural deficiencies of capitalism? Why?
What empirical evidence do you have to support your answer?
Which school of thought best ties together empirical evidence and US government’s policy choice? Grading Criteria:
The research questions identified above is answered.
An argument derived from this answer is present in the opening paragraphs of the paper.
The argument is supported by identifiable empirical evidence.
The most appropriate school of thought is identified, and its central assumptions are discussed in relation to empirical evidence and policy.
The argument, evidence, policy, and theory are well supported through research material, preferably from original sources.
Clarity, organization, structure, logical consistency (good outline, good transitions).
Academic style, language style, and grammar.
Refer to the Syllabus for point value of this assignment.