Pro Regulation of Financial Sectors 

  • Claim: Neutral
  • Evidence: Cited Sources

This source discusses that financial regulation is both good and bad. It provides evidence that supports the bank deregulation and how this negatively affects the consumers and how regulation of the financial sector help the consumers and hurt the banks. One reason why the national government regulates the bank is to protect the consumers/taxpayers. If the banks aren’t regulated it could potentially lead to another recession or depression if the banks start borrowing money or lending money to people that don’t qualify for loans. 

Con Regulation of Financial Sectors  

  • Claim: Neutral 
  • Evidence: Cited Sources 

With no regulation for the banks or financial sectors they will not have to report to the National Government. They could lend money to people that aren’t reliable and can mismanage the funds and ask for a bailout without any consequences. The banks unregulated will hurt all the consumers and lead to the rich getting richer and the poor stay where they are. The banks unregulated can lead to the big banks dictating politics. 

I agree that there needs to be regulation of the banks because without them there can be mismanagement of the funds and lead to the finance sector throwing or influencing the market/economy in their favor. This will only help the people with millions and billions while the middle class and the lower class will be hurt by this because they don’t have an inside scoop like the rich will if there is no regulation on this sector. The regulation of banks and the financial sector can be a positive for both. The people and the banks themselves are protected because the National Government will bail the people out so the banks don’t default which leads to people having no money to spend, which has a negative effect on the economy causing loss of  billions for the GDP of the U.S

Transition sentence 

  • The people and the banks themselves are protected because the National Government will bail the people out so the banks don’t default which leads to people having no money to spend, which has a negative effect on the economy causing loss of  billions for the GDP of the U.S, where as if there were no regulation the national government would only protect the banks and not the people.
  • The people and the banks themselves are protected because the National Government will bail the people out so the banks don’t default which then would lead to people having no money to spend, which has a negative effect on the economy causing loss of  billions for the GDP of the U.S. 
  • In brief with no regulation for the banks or financial sectors they will not have to report to the National Government. They could lend money to people that reliable and can mismanage the funds and ask for a bailout without any consequences. The banks unregulated will hurt all the consumers and lead to the rich getting richer and the poor stay where they are. The banks unregulated can lead to the big banks dictating politics which can lead to a more free and hyper competitive economy which leads to lowering of prices which is good for consumers boosting the economy as a whole  

Counter Claims

  • Although a deregulated financial sector will open the economy creating a faster pace and more peaks creating more chances for people to generate wealth it will undoubtedly come with its lows creating quick panic creating a situation similar to the recession or the Great Depression. The only difference would be that the banks would be bailed out and the people would suffer. 
  • Even though a deregulated financial sector will open the economy creating a faster pace and more peaks creating more chances for people to generate wealth it will undoubtedly come with its lows creating quick panic creating a situation similar to the recession or the Great Depression. The only difference would be that the banks would be bailed out and the people would suffer.

Although due to the fact having a regulated financial sector it stagnates the economy creating a slowing growth because of all the requirements that people need to pass so that the banks can lend them money. With all these regulations it kills the growth and hurts the economy in the long run

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CC BY-SA 4.0 Opposing Viewpoint: Regulation v. Deregulation of the Financial sector by Jaime is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

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