Stage 4

The article I have chosen is “U.S. Has a History of Intervention” found on the Drudge Report. The article is relating examples of when we have used nationalization in certain industries to fit our needs at the time. The intended audience is people who are afraid of the government stepping in and using nationalization in times of crisis. I believe the author is very credible because he uses strong historical examples and evidence that cannot really be argued against. I most definitely agree with the author view on the issue and his claims. Our government is talking about nationalizing of banks to help our economic crisis. In other cases in the past this technique has worked well for example, in 1917 the government seized the railroads to make sure supply, troops, and armaments moved smoothly and efficiently in the countries best interest of national defense in WWI. Also in WWII the government seized many companies including railroads, coal mines, and for a short time Montgomery Ward department store chain. In 1984 the government stepped in and took 80 percent of stake in Continental Illinois National Bank. At the time they were failing due to bad oil patch loans in Oklahoma and Texas. In the 1930’s the Reconstruction Finance Corporation gave loans to distressed banks and bought stock in over 6,000 banks, at a total cost of about 3 billion dollars. When the economy stabilized these stocks were sold. Experts say the only problem was that the government moved too slowly. We are facing a huge financial crisis and we need to do something fast. The times the government stepped in and did something we turned out ok.