Watch the videos below and answer the questions that follow.

The precipitous drop in the stock market, the decline of several mortgage industry giants and financial institutions, and a widespread loss of jobs were key features of the economic landscape in 2008. As a response to the recession, the Bush administration and Congress approved a financial bailout package intended to help the financial industry and spur economic growth.

The following two videos explain the background for the financial crisis, the reasons why the bailout package was needed, and the impact it would have on the American economy.

Paul Solman on the Credit Crunch The NewsHour with Jim Lehrer PBS September 25, 2008

Bush Says Bailout Will Work CBS News October 6, 2008

The bailout package passed by Congress represented a significant departure from the “free-market” economic policies that were a hallmark of the Bush administration. It also represented a new level of governmental regulation and involvement in American capitalism. Do you feel that greater governmental regulation of the economy should continue, or would you rather see more “laissez-faire” economic policies in the future? Why?

Do you think the government bailout of the financial industry helped mitigate the effects of the economic downturn? Why or why not?

The American economy also proved to be a key issue for voters in the 2008 presidential election. John McCain and Barack Obama both articulated their plans for economic policy and the solutions to the financial crisis in a series of issue ads.

Jobs for America Economic Plan McCain/Palin 2008

Same Path Obama/Biden 2008

In the above videos, what similarities did you find in the two economic plans of Obama and McCain? What differences exist between these two plans? Which plan seems more compelling to you? Why?

The economic downturn of 2008 also provided material for attacks ads from the two campaigns during the 2008 presidential election season.

Joe The Plumber McCain/Palin 2008

Sold Us Out Obama/Biden 2008

What criticisms of Obama’s economic policies does the McCain ad “Joe the Plumber” provide? How does the Obama ad “Sold Us Out” criticize the economic policies of John McCain? Which ad did you find more convincing? Why?

The Daily Show with Jon Stewart is a satirical news program hosted by Jon Stewart. The show draws its comedy from recent news stories, satirizing political figures, media organizations, and frequently the show itself and its cast members.

Recessional Terms The Daily Show with Jon Stewart Comedy Central First aired March 19, 2008

The above video humorously examines how pundits and political figures disagree on when to invoke the term “recession” when discussing an economic downturn. Based upon the discussion of economic policy in your textbook, why do you think this disagreement exists? Why would a political administration want to avoid the use of the term “recession” when discussing economic policy?