It was well-believed that free market was the essence of capitalism and the foundation of this great nation, and every bit of attempt of interfering with the system would be considered the great threat to the nation’s economy. However, is this free market system the best choice for the nation, or it is only another illusion that created by those republican economists? Furthermore, is financial deregulation good for one nation’s economy?
The movie “Wall Street” , directed by Oliver Stone and produced in 1980s, is an excellent example that illustrates financial deregulation can cause major economic problems, including insider trading, which both Bud Fox and Gordon Gekko have been committed. Bud Fox, who just gets out of college, is an ambitious man that is looking forward to become one of the top people …show more content…
Whether such regulations are good or bad to the economy has been debated over years, but there is no clear conclusions that everyone would agree with. In Matthew Sherman’s “A Short History of Financial Deregulation in the United States”, which came out in 2009, Sherman introduced some major policies that deregulate the U.S. economy. In 1930s, the Great Depression changed people’s attitude towards free market. Later on, the Glass-Steagall Act, which reforms banking industry, came out, and it builds a wall between commercial banks and investment banks. One of its provision also limits the change of interest rate and mortgage lending. However, people usually forget the pain after the wound is healed. From 1970s to 2000s, a number of bills have passed to deregulate the financial market and it foreshadows the incoming financial crisis. From reforms about Usury Laws, removing interest rate ceilings, to repealing Glass-Steagall, deregulations spread like