We love MTV News, but we were still amazed that they managed to score the first post-debate interview with Barack Obama. Nonetheless, in it he provides an explanation of why the Wall Street crisis matters to the average American, including 20 year-olds. And no, it’s not that they might have to consider going to law school instead of landing that cushy i-banking job straight out of college.
MTV News: Obama said that an economic collapse would have implications far beyond the job market — basically every aspect of daily life would be impacted in some way.
“If the credit markets collapse, what it means is banks aren’t lending businesses money. Businesses then can’t invest in plants and equipment, and make payroll, so they shut down. And that means the suppliers of those companies, they shut down. Over time, what happens is you get the whole economy coming to a standstill. That’s what happened during the Great Depression,” he explained. “And at that time, it was just banks that were in charge of capital. Now you’ve got all different ways that money flows … but the bottom line is, that if money freezes up, businesses can’t do business, and you get an enormous contraction of an economy. And that, ultimately, will affect that 20-year-old, because that 20-year-old is going to be looking for a better job after he gets out of school. … If our businesses aren’t creating jobs, they’re not creating tax revenues — now it’s harder for government to finance that college education or to build that new university. So it has a ripple effect.”
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