Introduction
“It’s the economy, stupid.” – James Carville
Speaking to his campaign team, James Carville directed this message when he was a political consultant for then-Governor Bill Clinton during the 1992 presidential campaign. The statement ultimately became an informal slogan for the Governor of Arkansas’ campaign against incumbent President George H.W. Bush and a famous quote in American politics. Since then, the phrase has been reused and modified several times to stress the importance of the economy in elections.
Carville’s remark recognizes the importance large economic forces play in our lives as they relate to personal finance. In other words, while Carville used this message to illustrate the correlated relationship between a healthy economy and political support, his statement also provides insight into how the economy affects the human condition. The ability to be financially secure corresponds with issues of employment, education, health, housing, criminal justice, and much more. Becoming more informed about how our own financial lives relate to the economic state of the country and world also pushes us to analyze our government’s role in the economy. The Financial Crisis of 2008 is perhaps the best vehicle to approach this question.
What are the origins of the Financial Crisis of 2008? What kind of disordered and incoherent environment resulted? Who is to blame for the Great Recession? How do our own, individual lives relate to the larger forces of the US economy and the American banking industry? How intertwined is the American economy with the global economy? What should the government’s role be in the economy? This curriculum unit addresses these questions by examining the development of the Financial Crisis of 2008 from its origins to its impact on the present-day—by analyzing the involvement of the US banking industry, the American federal government, and the role individuals played in it.
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