The (im)maturity of the free market

A casual search of any news website suggests at least 100 articles on job cuts over the last 3 months. While this may seem logical in times of a recession, how will it help emerging out of it? As more people lose their steady income, their spending will be drastically cut. That in turn will further exacerbate the downturn leading to more businesses laying off or folding up. Where does that end? In that context, perhaps, bail outs such as the one for Wall Street and that being approved for GM, Ford and Chrysler (primarily to contain job losses) do make sense, Considering that these decisions are being taken by the most conservative (laissez faire) of American administrations, this may well be the New Deal of the 21st century.

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