Evergrande Facts
What's the nickname of Chinas debt limiting policy?
The "3 Red Lines"
Should companies be allowed to make risky financial decisions without government interference?
Evaluative (Open Ended)
What specific debt limit did the three red lines policy set
Clarifying
Define "regulation"
Rules set by government to control an industry or activity
Which system acted faster - China or U.S.
China
What law did the U.S. pass after the 2008 financial crisis?
The Dodd-Frank Act
Is speed more important than accountability when responding to an economic crisis?
Evaluative (Open Ended)
Should governments have the power to regulate private companies, even when it limits economic freedom?
Evauative
Define "intervention" in an economic context
Government stepping in to influence or control a market/company
Which system involved more instiutions in decision - making
U.S. (Congress/agencies/courts)
What specific consequences did families face when Evergrandes borrowing was cut off?
Apartments they already paid for went unfinished
Does Concetrating power in a few officials make government more effective, or more dangerous?
Evaluative ( Open Ended)
What law did the U.S. pass after 2008
Clarifying
What are "checks and balances"
A systems dividing power across institutions so none has unchecked control
What does it mean for a rule to "restrict freedom"
Limit what someone is allowed to do
How long did it take Congress to pass Dodd-Frank?
One year
*DING DING DING* DAILY DOUBLE?!?!?!
Should economic freedom every be limited to prevent a broader crisis?
THIS IS THE CORE SEMINAR QUESTION
Evaluative - Open Ended
Does concentrating power in officials make government more effective or dangerous
Evaluative
What does "concentrated power" mean, and why is it risky?
Power held by a few; risky because its hard to check or reverse
Whats the main trade off of the U.S. approach
More accountable, but slower - allows more damage before acting
Name two insitutions in the U.S. regulatory process that Cina's policy bypassed
Legislature (congress)
The Courts
Who should bear ultimate responsibility when a company risky choices harm the public the company, the regulators or both?
Both, Clarifying and Evaluative
Which system handled its crisis better? China or the U.S.
Both - outcomes are factual but "better" is a value judgment
What is "systemic risk"
The danger that one entity failure spreads and damages the whole system
Whats the deeper civics question both systems are answering
Who has legitimate authority to intervene, and how much power should they have?