Government and the Economy

In our capitalist system, the government does not control the economy but rather guides it. The government no longer ignore economic problems or subscribes to laissez-faire capitalism as it did in the early 20th century. Instead the government takes an active role in maintaining and promoting the country’s economic health. There are two tools the government uses to guide the economy: monetary policy and fiscal policy.

Inside the Meltdown

In September 2008, the nation’s leaders were faced with one of the most critical economic crisis’s’ in modern American memory. The government tried to steer the nation out of a meltdown of the financial system using the tools at its disposal. As you watch the PBS Frontline episode complete the Public Policy: Meltdown video guide.

Click on the image above to watch Inside the Meltdown