E.+Persuasive+Research+Essay

Atrayu Polhemus 1/18/2011   B1    “The House and Senate are poised to pass a $700 billion bailout to Wall Street”(Haugen). People are losing jobs, homes, and futures due to the closing of many private industries. Banks are the major businesses needing the bailout money. The government bails out the banks in need; giving people the chance to keep their jobs and the bank time to recover. The government should bailout the private industry because it saves jobs, keeps Wall Street running, and will help our economy recover. The government bailouts are important to save people from unemployment. People can still use the bailed out business, such as a major banking corporation. Also, people can keep their stock or sell it if they like, instead of losing it. Keeping important industries running-primarily banks-allows citizens to access their money and keep it safely locked away. The working public needs banks for many reasons: credit, mortgages, everyday banking actions, loans, and etcetera. Without the governments help “most of the top tier banks would have collapsed” (Haugen). Haugen also says, “It’s cheaper for the country to just save the banks”. If we let the banks crash then huge problems will proceed, because our economic system runs on credit. Three banks collectively have amounted “$90 billion in repayments to the tax payers in a week”(TARP). Future earnings are to spread a larger share base, as the TARP transaction report shows, for tax payers are paid back in full more time will have to pass. Our government has bought stock with a 5% interest rate that came with warrants. Investment bankers are mostly interested in “making money and getting paid”(TARP). Bank of America has three billion in assets and agreed to pay TARP back $45 billion. Citi Bank is giving $1.7 billion in stock for bonuses instead of cash. Banking has much to do with how our stocks and Wall Street function. It is a quick way to make and lose money and can benefit our economy. “Bailing out banks, increasing regulation, and stimulating the economy will help ensure this country’s future prosperity” (Haugen). The government’s aid will help consumers restore confidence. The result of the government and President Roosevelt’s help during the Great Depression, “GDP skyrocketed from 1933 to 1937, posting real growth of 9.4% annually” (Haugen). Chairmen of the Federal Reserve said that the economy should be “moderately stronger” this year. President Obama’s help closing myriad taxes and using savings to cut business taxes “that could spur investment and jobs” (Calmes). The government should bailout the private industry because it saves jobs, keeps Wall Street running, and will help our economy recover. Some people may argue that this raises our taxes to pay for the bailouts. This is true, but it saves our economy from crashing. This saves us all from being in big trouble financially. Plus this money will eventually come back to us when the economy does turn around. Paying taxes is a small price in order to get our country back to the economy we should have.