Wednesday, January 19, 2011
Wells Fargo Meets Expectations of Increased Profit
An article in Daily Finance discusses Wells Fargo's increase in earnings and paid back loans. It received a bailout from the government during the financial crisis and was able to pay all of it back, plus increase its overall performance. This showcases the benefits of the mixed economic system the U.S. uses. To review, a mixed economic system is one in which the economy is driven by competition and self interest, but government intervention (for things like bailout money and health care) are allowed. Without government help, Wells Fargo may not have been able to make so much progress. Granted, not all businesses bailed out by the government were so fortunate, but Wells Fargo is a great example of those who were. If it was left to fend for itself, the country could have seen the loss of one of its major banks, and some very unhappy people as a result. Government aid in the financial crisis not only helped out businesses, but also the people who lost their jobs as a result of the bad economy. Without at least a little help from the government, the United States would probably be in much worse shape than it is now. Too much intervention, like in a command system, isn't ideal either, but a market economy has no government influence at all. The Unites States' mixed economy is a happy medium that allows for a lot of growth, but also for recovery when that growth declines or stops altogether.