Many would argue that the federal government’s response to the financial crisis of 2008 favored powerfully connected financial firms at the expense of the average citizen. Would you agree or disagree with this statement? Why?

What will be an ideal response?

WHILE STUDENT RESPONSES WILL VARY WITH THIS QUESTION, STUDENTS SHOULD DISCUSS THE UNEQUAL DISTRIBUTION OF POWER BETWEEN FINANCIAL LOBBIES AND GROUPS LIKE OCCUPY WALL STREET. A DISCUSSION OF AGENCY CAPTURE AND THE FACT THAT THE HEAD OF THE FEDERAL RESERVE AND THE HEAD OF THE TREASURY DEPARTMENT WERE BOTH CROSSOVERS FROM THE FINANCIAL INDUSTRY MAY HAVE HAD A LOT TO DO WITH HOW THEY HANDLED THE CRISIS. THE QUESTION REMAINS—IS THERE SUCH A THING AS TOO BIG TO FAIL? DID THE GOVERNMENT MAKE THE RIGHT CHOICE? STUDENTS SHOULD DISCUSS EVIDENCE ON BOTH SIDES IN PRESENTING THEIR ARGUMENT AND DEFENSE.