Tag: Deregulation

05/16/11

Banking on that Regulation

In 2009, Obama proposed to make stricter regulations in the financial sector. AIG was an insurance giant company that has major influence all over the world. It’s failure would destroy the financial system. Obama proposes that the government be able to seize companies in order to save them. This stricter regulation would hopefully bring a check to other companies.

During the 1980’s, there was a movement pushing for government to have deregulate the financial sector. Some acts proposed allowed firms to take part in competition in traditional banks, investment bansk and insurance companies. There was also the creation of credit default swaps which was the reason why AIG failed. Many people blame the crisis in 2008 due to the deregulation from the government in the financial sector.

Source: 

http://articles.latimes.com/2009/jun/16/business/fi-financial-regs16

http://en.wikipedia.org/wiki/Deregulation

05/15/11

Obama Is The Fairest Of Them All?

On January 29, 2009, President Barack Obama signed the first act of his presidential legacy, called Lilly Ledbetter Fair Pay Act. The act states that the 180-day timeframe to raise a discriminatory wage lawsuit is renewed with the issuance of each  new discriminatory paycheck. This act overturns the decision from the 2007  case, Ledbetter v. Goodyear Tire & Rubber Co., which states that the lawsuit commences on the date the employee forms a discriminatory wage decision. The act would protect women and other workers from pay discrimination.

During former President Bill Clinton’s administration, the policies he pursued loosened the government’s grip on private businesses and other sectors. For instance, the Telecommunications Act of 1996 deregulated broadcasting and telephone companies. He also abolished “welfare,” also known as Aid to Families with Dependent Children (AFDC). As a result, it became more difficult for needy individuals to receive assistance and payments. In comparison with President Clinton’s administration, President Obama’s act was a move towards government regulation. President Obama’s priority is the the rights and interests of American citizens. By signing the Lilly Ledbetter Fair Pay Act as the first of his presidential career, he conveyed the message that he wished to expand government’s role and power in the economy and business.

Sources: http://www.nytimes.com/2009/01/30/us/politics/30ledbetter-web.html

http://writ.news.findlaw.com/grossman/20090213.html?=features