Great Recession: U.S. public opinion on government support of financial system 2008
Following the collapse of the Wall Street investment bank Lehman Brothers on the 15th of September 2008, the United States government committed to intervene in the financial sector to stabilize the system and prevent further bankruptcies of systemically relevant institutions. This action was unprecedented in modern U.S. history and led to many financial institutions being part-nationalized, receiving huge sums of money in the form of government bailout packages, or having their activities strongly monitored and regulated by federal government agencies.
The opposition to government support of the financial system from democrats and independents, many of whom would likely otherwise support more state intervention in the economy, possibly reflected the sentiment that the institutions which had caused a crisis would now benefit from public investment into the financial system. This sentiment drove many protests in the U.S. at the time, notably the Occupy Wall Street movement.
Public opinion on the bailouts
In spite of the controversy within the Republican Party, traditionally the party of small government and non-intervention in the economy, over George W. Bush's administration taking these measures, Republican voters actually showed above average levels of support for these policies. Democrats and independent voters showed lower than average levels of support for these interventions, although a majority of both still supported the administration's policies.The opposition to government support of the financial system from democrats and independents, many of whom would likely otherwise support more state intervention in the economy, possibly reflected the sentiment that the institutions which had caused a crisis would now benefit from public investment into the financial system. This sentiment drove many protests in the U.S. at the time, notably the Occupy Wall Street movement.
