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Government Intervention in the 2008-2009 U.S. Automotive Crisis: Laissez-Faire Economics Abandoned

Gershenzon, Michael
http://rave.ohiolink.edu/etdc/view?acc_num=muhonors1272038103

Abstract Details

2010, Bachelor of Science in Business, Miami University, School of Business Administration - Finance.
As most are aware, 2008 and 2009 were defined by economic turmoil and uncertainty. The automotive industry was not immune to the panic, arguably feeling the wrath of the chaos more than any other industries. Believing the recession would persist lacking the health of the automotive sector, many experts turned to the U.S. government for a safety net. The government responded with two main tools in an effort to staunch the hemorrhaging of the auto industry: governmental loans (“bailouts” as they have come to be called) and an automotive sector specific policy, the Cash Allowance Rebate System (CARS), colloquially known as Cash for Clunkers. In this thesis, I analyze the government's decisions and test stock market sentiment of each pertinent intervention. Contrary to Adam Smith's revolutionary work with laissez-faire economics, I find that the market overwhelmingly supports government aid. The thesis centers around explaining these implications.
Thomas Boulton (Advisor)
David Shull (Committee Member)
Terry Nixon (Committee Member)
32 p.
Business Community
Automotive; Abnormal Returns; Government Intervention

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Citations

  • Gershenzon, M. (2010). Government Intervention in the 2008-2009 U.S. Automotive Crisis: Laissez-Faire Economics Abandoned [Undergraduate thesis, Miami University]. OhioLINK Electronic Theses and Dissertations Center. http://rave.ohiolink.edu/etdc/view?acc_num=muhonors1272038103

    APA Style (7th edition)

  • Gershenzon, Michael. Government Intervention in the 2008-2009 U.S. Automotive Crisis: Laissez-Faire Economics Abandoned. 2010. Miami University, Undergraduate thesis. OhioLINK Electronic Theses and Dissertations Center, http://rave.ohiolink.edu/etdc/view?acc_num=muhonors1272038103.

    MLA Style (8th edition)

  • Gershenzon, Michael. "Government Intervention in the 2008-2009 U.S. Automotive Crisis: Laissez-Faire Economics Abandoned." Undergraduate thesis, Miami University, 2010. http://rave.ohiolink.edu/etdc/view?acc_num=muhonors1272038103

    Chicago Manual of Style (17th edition)

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© 2010, all rights reserved.
This open access ETD is published by Miami University Honors Theses and OhioLINK.