The Government Has A Positive Impact On Economic...

The government has a positive impact on economic sustainability because it strives to stabilize the economy by forming a positive reliance within the financial industry. The United States is considered the financial capital of the world; therefore, it is essential for our government to collaborate with the world’s strongest financial firms, which help establish transparency between investors, institutions, and businesses worldwide. America has adapted a free market economy, which states, â€Å"A free market is a market in which there is no economic intervention and regulation by the state, except to enforce private contracts and the ownership of property.† (â€Å"Free Market†, by Wikipedia and is governed by CC-BY-SA) Recently there has been major†¦show more content†¦However, I strongly disagree with this statement because the financial institutions failed to produce a constant long-term sufficient economy. Throughout history people had to endure some of the harshest economical conditions due to the lack of stability produced by our financial institutions. Therefore, I believe it would make more sense for the government to implement economical regulations and restrictions in the financial sector. When financial institutions have failed, they tend to turn to the government for help. It is very difficult for the economy to be fully functional without some kind of governmental assistance. I believe the economy would be more efficient and productive if the financial institutions and government worked together in harmony to create a nondiscriminatory system of checks and balances. I am a firm believer of capitalism, but at the same time I also understand that it is necessary for the government and the financial sector to work together in order to maintain a healthy economy. Case Background Describe the business/social/political environment? The financial institutions are primarily located in New York City and they are also known as Wall Street. These institutions are located at the lower part of Manhattan, which is the home of the New York Stock Exchange. Wall Street is mainly made up of large U.S. brokerages and investment banks such as Bank of