1. Economics and Government Regulations
Therefore, the government has to protect these firms when they face difficulty. Government protection includes facilitating a merger, providing credits, and injecting money. ... In fact, the Great Recession in the 1930s was caused by the failing of many small local banks. ... Hence, the government still had to enact policies to protect those banks. ... Their dividends pay a huge amount of money – 40 billion each quarter – to the Government treasury. ...
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