US economy on federal life support |
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Bail-out. Were it not for the billions in aid from the Treasury and the Fed, it is quite possible that the US financial system would have already collapsed. Nevertheless, they could not prevent the failure of individual financial institutions as well as an economic growth slowdown. Tax checks. The financial crisis combined with a weaker labor market as well as high oil prices already led to falling real compensation of employees. Without the tax rebates, private consumption would have already
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