The peso was devalued and economies were affected worldwide. The United States sent Mexico a $50 million bailout and Mexico recovered. Several years later, the United States bailed out banks, insurance companies, mortgage lenders and automakers. These bailouts affected many nations invested in the United States such as China, France and Germany (Gayner, 2008).
John Locke would have been frustrated by the bailouts. Locke believed the chief purpose of government was to protect the rights of individuals, not other governments. Locke argued that through a social contact, men willingly gave up some rights to ensure liberty and property ownership, but the men could take back the rights if the government failed to protect those rights. Since Locke also supported a free market economy, he would have considered the bailouts to be government overreach. However, Locke would approve of a global economy as it is based on free