Policy Issues Essay Example | Topics and Well Written Essays - 500 words

Policy Issues - Essay Example The foreign policy focuses more on the international relationships between countries. All policy makers should be wary of any unintended negative outcomes of policy decisions made. The world experienced the Great Recession of 2007 to 2009 describe by rise in inflation, loss of the dollar value to other foreign currencies and general stagnation of the US economy. This called for government involvement in saving the economy and other adverse effects of the recession. The then president, George Bush instructed government officials to come up with measures to save the economy. An economic policy was devised where the government used economic interventions such as comprehensive tax rebate, control of business entities and funding the Toxic Asset Relief Program. Controlling of businesses received significant amounts of resistant from conservative economists (Lind, & Tamas, 2006). This is because, they believed that businesses have the ability to act rationally and maximize efficiency and profit. As a result, profitability in business will eventually stabilize the economy. However, Bush’s administration was keen to indicate that the government played a role in the private sector business. Economists and conservative policy makers viewed the recession issue as a result of inadequate regulation in the financial industry of the USA. The perception on economic regulation changed since it offered an opportunity for recovery. Consequently, the policy makers decisively concluded that economic regulation would maintain a good level of equity in the country’s economic system. The regulation aimed at changing some tax laws, adjusting ownership of property, an implementing the concepts of individual accountability. However, the issue of ownership of property was believed to have led to the supreme mortgage crisis. Moreover, there were minimal measures to regulate the financial institutions especially for the individuals who could not afford owning property. The