Leo Core Values

Government’s Role in Market Failures

Core Values play an important part of guiding individuals and business. Lacking core values as an individual or cooperation can guide either down the proverbial river without a paddle. Having no guidance or direction in life or business does not create wellness. Saint Leo University core values are Excellence, community, respect, personal development, responsible stewardship, and integrity (Saint Leo University, n/a). Saint Leo University core values are not just words, but guidance on how to live everyday life including the government’s role in markets failures. Saint Leo’s core values can assist the government in what it does or how it reacts to market failure. Based on a free market economy, the

From 2001 and beyond the government was forced to play a major role in market failures. Shortly after the terrorist attacks gasoline cost raised dramatically. The mortgage bubble peaked and finally burst causing millions of defaults on mortgages. In addition to the extremely high cost of gasoline, many US based automotive makers seen a dramatic decrease in sales almost landing two of the big three automakers on the brink of bankruptcy. One of the first pieces of legislative passed to help consumers was the Troubled Assets Relief Program (TARP). TARP addressed the collapse of the auto industry, investment, and banking failures

Shortly after the terrorist attacks gasoline cost raised dramatically. The mortgage bubble peaked and finally burst causing millions of defaults on mortgages. In addition to the extremely high cost of gasoline, many US based automotive makers seen a dramatic decrease in sales almost landing two of the big three automakers on the brink of bankruptcy. The government stepped in under the TARP program to save the whole automaker industry. Not only were Ford, General Motors and Chrysler in trouble, but parts stores, auto mechanics and body repair facilities are just a few who were impacted by the failure. President Bush supported the governments action to save the automakers with the following statement, “ Government has a responsibility to safeguard the broader health and stability of our economy”. He continued by saying, “If we were to allow the free market to take its course now, it would almost certainly lead to disorderly bankruptcy and liquidation for the automakers” (http://money.cnn.com/2008/12/19/news/companies/auto_crisis/). On the brink of collapse, without the government action, the finical sector, housing, and automaker collapse would have destroyed our economy. Ultimately it was President Bush and Obama’s responsible stewardship to intervene in the name of the people of United