Some put blame on government, mortgage companies for poor economy
March 29, 2009
As the economy worsens it is easy to try to put the blame on others.
Laurel Adams, visiting assistant economics professor, said it’s difficult to hold a single group or event responsible.
Adams did, however, mention an issue that has contributed to the current state of the economy.
“Mortgage backed securities are one factor that has affected the economy,” she said. “These securities are essentially having money borrowed from the public through bonds.”
Adams said the promises made by mortgage companies concerning their value of the assets have had negative effects.
“The problem is the value of the money is being backed by a promise from mortgage companies that people will be paying their mortgage,” she said. “But when people can’t pay them off, the value of their assets fall.”
Adams added when the value of the assets fall, the companies’ assets fall which causes the market value to drop and hurt the economy.
Adams said the government has always been an easy target regarding any issue faced in the country.
“When something like the economy goes bad, the government is going to be blamed for part of it because they are the ones who are making the decisions at the time,” she said.
A few students had their own opinions on why the government gets blamed for the economy.
Mike Isaacs, senior physical education major, said the recent shift of the presidency makes it simple when putting the blame on someone.
“It’s easier to blame Congress for our bad economy because of the transition in the office,” he said.
Isaacs said he thinks the government should only take some of the blame, not all of it.
“When things started to get bad, the government should have stepped in and done something right away,” he said.
Senior history major Adam Malnati said hard-hitting times are when it is best to play the blame game.
“When things are tough, people look to point their finger at someone and usually it’s the government,” he said.