Narrowing down my "Economy" Subject for my government paper?

Question

I have to write a government paper over an issue that has to do with the government.. I chose the Downfall of the economy.. SHe told me to "Narrow it down alot." what should i do it on?

Answer 1

The mortgage crisis. Or rising costs of oil, However they don't really have much to do with governments.

Well the mortgage crisis was created because congress was telling banks and mortgage lenders that they had to find a way to get people mortgages that normally wouldn't be able to get them . Then came variable rate mortgages, and then Interest only mortgages, and balloon payments. And since most people have so little understanding of finances they get the loans, and didn't understand that their payments would either not create any equity or jump significantly when the Fed rate increased.

As for oil, government has nothing at all to do with the price of oil. It is governed by the invisible hand of supply and demand, and the falling US dollar, which is weak, but will gain strength again in the next couple of years.

Answer 2

High taxes destroying the economy. That is what is happening now in America.