The role of the banks in terms of decreasing unemployment, maintaining Essay

The role of the banks in terms of decreasing unemployment, maintaining determine stability and facilitating economic growth - Essay ExampleCapitalism tends towards the idea that organizations are in well luck when they make significant profits but its tough luck when they make significant losses, acquire neither sympathy nor envy. However, the economy today is not a pure free market but, rather, it is a mixed economy, in which the markets are regulated by a government instituted framework. In addition, the government in any case carries out various functions, instead of leaving the private sector to make decisions (Mitchell, 2014 p61). The banking sector is a establish example because of their importance to the economy, including management of loan and savings facilities.The banking crisis of 2007 initially led to a rush by UK citizens to withdraw their money all at once, meaning that banks would bear failed since they would have been unable to pay, portending potentially incal culable damage to the UK economy. It was, therefore, the responsibility of government agencies to stabilize the system by supervising banking activities and propping up banks that threatened to destabilise the system through bailouts (Cordella & Levy-Yeyati, 2013 p34). In essence, it is the people owed money by the banks that the government is bailing out. In addition, some of the biggest investing banks in the world are institutions that are so critical to the market and job creation that they have gradually come under the control of the government. This explains the bailout of AIG by the US government with a $100 meg loan that ensured American businesses would not collapse if they suffered losses, hurting national employment levels. Takeover of big owe guarantors in the UK, such as Bradford and Bingley, was also necessary because, in spite of its private shareholding, it was a de facto theatrical of the government and, in effect, the public (Cordella & Levy-Yeyati, 2013 p35). Failing to nationalize the company would have