CAPITALISM CHALLENGED: THE GREAT RECESSION

Lesson 1

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Please read CAPITALISM CHALLENGED: THE GREAT RECESSION beginning on Page 3 of the textbook and respond to the following questions:

1.   Journalist/lecturer Richard Doak lamenting what he believes to be unfair and excessive pay to executives: “Executive greed has perverted risks, rewards. . . . The American system has been rigged to over-enrich those at the top.” What do you think? Is greed the culprit? Has the system been “rigged,” or can we continue to count on the market to properly distribute pay? Explain.

2.  Should the government limit the private sector executive pay? Explain.

 3.  Federal Reserve Bank of Kansas City president, Thomas M. Hoenig: “[Americans] realize that more must be done to address a threat that remains increasingly a part of our economy: financial institutions that are ‘too big to fail.’” Do you agree that our concentrated financial sector is a threat that must be addressed? Explain.

Requirements:

·       Two Page Minimum;  12-point Times New Roman; double spaced; and page numbering.

·       Please be sure to answer the entire question to receive maximum credit for this assignment.

·       Use and include information from the weekly course content and outside sources to support the conclusions contained in the paper.

·       Be cognizant of spelling, punctuation, and grammar. 

·       All sources should be cited in proper APA format (in-text citations and a reference list).

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SAMPLE SOLUTION

Greed is the culprit following the government’s actions towards bailing out the private and large entities during the great recession. The amount paid to the big financial institutions’ employees did not make sense considering that the economy was collapsing. The most significant move would have been cutting down costs to save on spending (Petrus, 2019). On the other hand, I concur that the system has been rigged, and we cannot depend on the market to distribute pay equally. There is no convincing explanation of how an organization such as Wall Street could spend $135 billion towards new hiring amid a crisis. It means that the system dictates how and what…