Position Essay

If you’ve been watching or listening to the news lately, you’re aware of how serious the “economic downturn,” “financial crisis,” or “recession” has become. Every hour of every day we hear about the rising joblessness rate, the increasing levels of foreclosure, and the trouble on Wall Street and in the banks. Everyone is worried, indications haven’t been getting any better since the crisis set in last fall, and very few people seem to think things will be improving significantly in the near future. But although no one seems to have a definite solution to the complex and deeply rooted problems plaguing our economy, many commentators have theories about how we got into this situation, which groups and institutions are most responsible, and what the government should do to help restore the health of the economy. In this essay, you will research the current economic crisis and take an informed position on one of the central issues relating to it.

You do not need to be an economic expert to complete this assignment, but it will help you develop your position to have a general understanding of the key players and issues involved in our current economic situation. To aid you in understanding these issues, we will be listening in class to a March 2008 episode of This American Life entitled “The Giant Pool of Money.” This episode on the “housing crisis” that has been widely blamed for starting this downturn, strives to answer the questions, “What does the housing crisis have to do with the turmoil on Wall Street?” and “Why did banks make half-million dollar loans to people without jobs or income?”

You will have two primary objectives for this assignment: To take a nuanced and clearly articulated position on a debatable issue, and to use research to build a case supporting your position. The position you take can support a particular theory or proposition, oppose that theory or proposition, or present a more nuanced combination of support and opposition. For example, a combination thesis on the topic of the bailout of AIG might look something like this: Given X and Y facts about AIG’s role in the economy, the Obama administration was smart to offer massive financial support to the insurance giant. But given Z fact about AIG’s history [or about corporate executive culture, or…], the government should have attached A or B provisions to the bailout money.

To get you thinking about possible directions to take in your position paper, here are some propositions you could take a pro, con, or mixed position on:

1) The US government should let the Detroit automakers fail. They should not provide any more money to them in the form of government assistance, but rather should let the automakers go into bankruptcy and restructuring. [You would want to add an additional clause or sentence summarizing the main reason why this course of action – or inaction – makes sense in economic terms.]

Here are a couple articles arguing this position:

Detroit Must Fail

$73 An Hour: Adding it Up

Here is an article by a member of the UAW arguing against this position and for “The Right Way to Bailout the Auto Industry.”

2) The AIG employees who received large bonuses after the company accepted government bailout money should return that money. Alternately, the congress should pass the pending legislation that taxes those bonuses at 90%. [Again, you’d briefly suggest why this is a good course of action.]

Here is an article that summarizes congressional and popular outcry about the AIG bonuses.

3) When congress and the Bush administration passed the TARP legislation to bail out failing banks, they did not require any CEOs to resign and included provisions for executive bonuses to be paid. Conversely, when Congress and the Obama administration announced their plans to bail out the auto industry, they required Rick Wagoner (CEO of GM) to resign and called for restructuring that will require union workers to accept lower wages. This inconsistency in the two bailouts suggests a double standard in the way the two industries are handled. The Obama administration should require the banks to restructure and make sacrifices the way the auto industry has been asked to do.

Here is an article comparing the two bailouts.

4) The current economic downturn is an indication of larger and more fundamental problem with the way American capitalism is structured. The answer to the problem is something other than what our government is currently doing. [And then you’d need to offer a specific suggestion for a different way to structure the economy, to prioritize financial and social goals, and/or to define economic health.]

Here is an article from The Nation arguing for a different kind of bank bailout.

Here is an article arguing that the bank bailout is really a smokescreen to consolidate finances in America.

5) Take a position on another aspect of the recent economic news. If you choose this option, you will need to share your idea with me for approval by Wednesday, April 22.

Your thesis for this paper will need to take a clear, nuanced, and debatable position on one of these issues. The questions offered for you to write about are given as guidelines and idea generators and should not be reproduced in your opening paragraph; rather, you should articulate an original wording of your position that reflects the argument you will be making in your essay.

Assignment timeline:

Computer lab research time: Tuesday, April 21 and Wednesday, April 22
Topic sign up: Wednesday, April 22
Working thesis and annotated bibliography (5 sources): Tuesday, April 28
Rough Draft for peer editing: Tuesday, May 5
Final Draft due: Monday, May 11