The global economic crisis has hit the U.S. with a particular force. It has sharply reduced the volume of production, which led to the breakdown of finances, caused widespread destruction and bankruptcy of industrial, commercial, and financial firms, not to mention mass unemployment. The years of the crisis affected one-fifth of all U.S. banks, every third worker was denied employment. A documentary titled “The Men Who Crashed the World-Meltdown” talks about the particular reasons for how the process took place.
It began with the actions of reforming the administrative and judicial authorities, issues of economic planning, and legislative regulation of the economy. The land ownership and policies surrounding mortgages were drastically changed and skewed which allowed for greater borrowing and homeownership. People from all walks of life were now given a chance to own a home. But this practice became one of the key reasons for the financial crisis. As the conditions set out in mortgages were very favoring even towards people will low finances, the banks did not care how people will pay for their homes. Even young people and those who were poorly received mortgages. The fact that the uneducated public was the target market adds to the devastations because the loaning companies were using people’s lack of knowledge to take advantage of them. The terms and policies were hidden so that after some time the payments on the mortgage would increase (The Men Who Crashed the World-Meltdown).
Also, as many countries worldwide use banks to store their money, it has been proposed to tax the depositors of such investments. This would help alleviate the financial crisis that has devastated the United States. This was one of the proposed solutions to the crisis, but it has not worked as well as planned. Due to this, there was a decline in shares, which somewhat rebounded but the decrease continued. This also led to the euro lowering its value in comparison to the dollar. There was no major reaction from investors and so, the matter was somewhat paused in order to figure out the best course of action. The American economy would really have benefited if many investors from countries all over the world were attracted to deposit into their banks, but with an increased tax this might damage the plan and reputation of the banks. For those countries with economies that are weaker or developing, this sort of change would divert them from investing and dealing with the United States.
A clear plan of action has not been outlined yet and so, deliberations are in process. It must be done wisely because if everyone is taxed equally, a lot of smaller investors would really suffer. This is why it is noted that the policy changes must address issues individually, as to not greatly affect smaller investors. The parliament has to decide what to do next and it must be careful because any minor decision will be very influential. There is a possibility of investors withdrawing their money from the US banks because in such an unstable time there might be future changes to the tax. The longer this situation takes place, the more of an effect it will have domestically but also, on the global market. This is why all the sides are interested to resolve this matter as quickly as possible. This situation has created a lot of stir globally (McKay 17). It raises questions as to what will follow and how other investments worldwide will be affected. If the United States does what it has planned and investors are taxed, other countries might do the same and change the world market in a major way.
The “Occupy” movement was another part of the global market change. It started because of an issue that was dominating for some time. The market and economy of the world are run by those in power and with vast resources, so it is understandable why people would be displeased. It was a righteous protest, as it is unfair that 1 percent of the population holds all the wealth while the rest drag behind. The fact that 99 percent of the population has to live on the verge of the middle class or below is unacceptable by any standards. People were demanding better distribution of money and an adjustment of the taxation system. It is a correct policy where taxes are larger for those with greater property and more wealth, while those with fewer resources can be exempt from paying certain fees. Those who want to start their own business, need money for development but they are forced to pay the same amount to the government, as the businesses that are extremely prosperous and make millions of dollars (“Occupying Wall Street: The Inside Story of an Action that Changed America” 3).
Even though the government is trying to find solutions and quick fixes to the problem, the problem is too great to be resolved in an instant. A social change is needed to make sure that the banks, investors, and organizations change their policies.
Works Cited
McKay, David. American Politics and Society, New York, NY: John Wiley & Sons, 2009. Print.
Occupying Wall Street: The Inside Story of an Action that Changed America, New York, NY: OR Books, 2011. Print.
The Men Who Crashed the World-Meltdown. 2013. Web.