Question

The prominence of the neo-liberal capitalist free market led to the 2007 economic crisis and only _____prevented further damage to the economy.

deregulation

deunionization

government interventions

privitazation

Answer 1

government interventions

In 1776, British economist Adam Smith published his book, The Wealth of Nations. Adam Smith, who some regard as the father of modern free market capitalism and this very influential book, suggested that for maximum efficiency, all forms of government interventions in economic issues should be removed and that there should be no restrictions or tariffs on manufacturing and commerce within a nation for it to develop.But though neo liberal captalist free market led to the 2007 economic crisis. As, the market went to deep down into crisis, the government intervention and rspecific regulations in finance and credit markets.The Troubled Asset Relief Program of 2008 rescued financial system from almost certain meltdown, saving the U.S. financial system at the brink of disaster.The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 strengthened the fledgling economic recovery by cutting the payroll tax and continuing extended unemployment insurance benefits.