During the recession of 2008-2009, the administrations of Presidents George W. Bush and Barack Obama flooded several banking, financial services, and insurance firms with government funds in exchange (at least temporarily) for government ownership rights. The unprecedented move signaled the government's concern that the global banking system might collapse if these firms ended up in bankruptcy. The decision for active government involvement in the operations of these firms demonstrates: A. The unforgiving nature of capitalism. B. The desire for more individuals in the U. S. to live under a socialist system. C. The trend toward mostly capitalist nations to move toward socialism. D. The freedoms the U. S. government has under capitalism.

Question

Jillian Grimes

Business

16 April, 08:29

During the recession of 2008-2009, the administrations of Presidents George W. Bush and Barack Obama flooded several banking, financial services, and insurance firms with government funds in exchange (at least temporarily) for government ownership rights. The unprecedented move signaled the government's concern that the global banking system might collapse if these firms ended up in bankruptcy. The decision for active government involvement in the operations of these firms demonstrates: A. The unforgiving nature of capitalism. B. The desire for more individuals in the U. S. to live under a socialist system. C. The trend toward mostly capitalist nations to move toward socialism. D. The freedoms the U. S. government has under capitalism.

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Answers (1)

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Nosey · Answer 1

The answer is: C. The trend toward mostly capitalist nations to move toward socialism.

Explanation:

Capitalism is an idea that favors free markets, but 100% pure capitalism will never exist. The same happens to socialism, no country is 100% socialist. All the countries in the world are mixed between capitalism and socialism but on different percentages.

For example, in a true capitalistic nation no government could exist since no taxation would be allowed. Governments function with the money of their citizens collected through taxes, but theoretically in a free market taxes don't exist. Currently the US and China are involved in a "trade war" which includes import tariffs, which should not exist according to capitalism.

I'm not sure, but I believe there are no pure socialist countries in the world and they probably have never existed either. Not even the Soviet Union was a pure socialist country and China has become the biggest defender of capitalism in the world.