Economic growth is a concern of every government, and it is upon it to formulate policies that promote effective development across different sectors. There are various contributors to the performance and success of the country, like corporations and other big agencies. The common citizens also play a vital role in enhancing the surge in economic dominancy in the nation. When it comes to giving support to the players in the market, the federal government has to weigh between the institutions like money markets and the people. Even though both can contribute to the generation of national income, Wall Street only favors a few individuals who have power and influence, unlike Main Street that aims at protecting the interest of citizens.
Based on the perspective of president Franklin Delano Roosevelt (FDR), he argues that it is the responsibility of the government to bring reforms that can save common people from the effects of economic depression. According to his statement, FRD said that the government is focused on ensuring the control of the system is not handed to the few individuals and corporations. He believed that the handful of men was responsible for the false boom days before 1929. From this point of view, for the effective and true economic performance of the country’s economy, the federal government should put the effort in helping the average individuals to gain stability and to enhance their development. For instance, in 1933 the federal government focused at reducing the wrong doings by the powerful power to save the system (Roosevelt, 1941, p. 80). It therefore means bailing out the Wall Street would imply bringing back the people who would affect the operations of the government by favoring their self-interests.
The focus of Wall Street is to protect their interest, such as the wealth, political power, and privileges they have. They are against the government reforms that would promote liberalism in the country. Their effort is to discourage the progress the federal government makes to recover the country from the effects of the recession. For example, in 1937, the government reduced the work relief, knowing that the corporation would provide employment to supplement the state’s struggle. After the speculation, the industry did not supply jobs to cover for the curtailment by the government to offer relief (Roosevelt, 1941, p. 81). This aspect implies that financing the corporations would not guarantee an increase in the creation of job opportunities for the people. Therefore, instead of bailing out the sector, the federal government should channel its resources to the average people to boost their business hence raising their livelihoods.
The enactment of laws encouraging minimum wage and the introduction of maximum working hours become a sign of relief to the people. Before the legislation, individuals experience constant exploitation from employers. The recommendation of the policies by president FDR would improve the economic performance of the average people in the country (Roosevelt, 1941, p. 82). When federal-state helps the common citizens to acquire income, it improves their living conditions and widens the market for products produced by the factories in the country.
Giving support to Wall Street would mean facilitating the concentration of economic power to a few individuals who have the ability to manipulate labor and capital employment in the country. According to FDR, the act would increase the danger to the federal government since it would impair the efficacy of economic growth (Roosevelt, 1941, p. 83). It will derail the private sector in engaging in the provision of jobs to the people. The impairment would also result in unfair distribution of income amongst the average persons in the country. In general, focusing on aiding a handful of corporations would not impact the overall economic growth of the nation.
Similarly, the corporation has adopted the trend of avoiding paying taxes that can be used to enhance growth in the country. The majority being monopolistic in nature would encourage unfair competition in the economy, which is ineffective or general development. Furthermore, private firms engage in price rigging that interferes with the overall cost of products in the economy. To establish the effect associated by concentration of economic power in the economy, the president FDR ordered a thorough research to estimate the extent of impact in the industry (Roosevelt, 1941, p. 83). Bailing them out by the federal government will promote the bias practices in the system, thus limiting the productivity of the resources such as labor and capital.
In summary, when power and economic control are left to the hands of a few individuals, they value their self-interest; hence their practices limit the overall economic growth. For the US government to experience steady and effective development in the economy, the federal government should give support to the average people through passing and implementing legislation that favors their practices. When citizens have access to financial resources, they enjoy better living standards and create more markets for the commodities produced within the country. Therefore, to promote general and fair income distribution amongst the people, the federal government should bail out Main Street. Investing on the average individuals would discourage malpractices such as tax evasion and manipulation of the labor and capital resources available in the system.
Reference
Roosevelt, F. D., (1941). The continuing struggle for liberalism. In N. S. Love (Ed.), Dogmas and dreams: A reader in modern political ideologies (pp. 79 – 88). CQ Press.