The United States has a record deficit. There is no way that the U.S. has enough money to bail out all of the failing businesses in the country. These bailouts can only send us into further debt. And there is no way to bail out all failing businesses, so how would the government choose who to bail out and who not to bail out? Also, these businesses are failing because of the economy, yes, but also because there is something missing from their business plan that has not made them able to weather that storm. We should focus on social problems and job creation instead.
The government should intervene with the free market and save failing business of a large size that through failure can send a recessed economy into a depression. Intervention should only apply to extremely large employers of 1,000 or more employees, with a clear and concise plan to repay monies and a design of how they will be spent by the businesses.
With tons of businesses failing in this economy right now, it would be prosper to have help from the government and they should start helping. I think if everyone gave back and starting doing what is necessary to make sure we get what we need and not what we want, then businesses will be successful. Stop spending money on what we think we don't need.
I feel that emphasis should go also to smaller business as well. a success business does provided jobs and economic stimulation to communities. That's why small business need to be rescued also because they provide economic balance in a community. When businesses start to fail the community around them stat to fail also. I do fee that failing business need too submit a plan of success that shows what changes they are going to make to succeed. Companies should be able to also show a positive track record that proves with the right resource they can be successful.
The market system is made up of product and services. So much currency changes hands like clockwise and government intervention is necessary to make sure all of the money flow through market system clockwise. Markets and prices are key elements of the market system and government must stay proactive in regulating the monitoring the market system. If they don't someone else will.
Free trade started with George Bush with NAFTA and Bill Clinton signed into law while in office then George W Bush passed Free trade with a number of countries such as Chine, India and the list keeps growing today with our current president South Korea among others. This is whats killing factory jobs in this country so yes the government created the problem so the government should intervene to make the playing field a little more equal. The U.S. cant compete with Slave labor or low pay, counterfeit products.
If the business is failing, well then thats their problem. If they aren't good enought to SUCCEED than they need to go out of business. Let other bussnisess take their place and have a chance to succeed. WE NEED A FREE MARKET!! DON'T BAIL COMPANIES OUT OF BANKRUPTCY!
The economists assume that government intervention is not required as it obstructs innovation and imposes financial burdens on the society. But some cases such as public goods, externalities, and the prisoner's dilemma requires government intervention to control the problems might result. The government should intervene because there is no "invisible hand" that will solve all of these market failures.
Because the free market system is rigged in favor of BIG business and it isn't a true free-market system. If it were, the price of gas wouldn't jump suddenly overnight and cell phone providers wouldn't be so outrageously expensive and broad band internet would be cheap and available everywhere and the health care system wouldn't be so out of touch with reality because of greed on the part of the insurance provider. Wall Street and Big Banks would not be paying bonuses to their crooks who tilted the system in their favor and by-passed laws and NEVER faced prosecution.
Well without the governments help, there wouldn’t be law and order in the economic world. Also, if government does NOT intervene with the free market, then corruption will arise and take control of America’s Economic System. Also, if free markets do not succeed, then who is to look up to when everything crashes down upon the person? Without the government, things couldn’t go on accordingly.
"FORD Motor Company has pocketed around $2.5 billion in government subsidies over the past decade yet its Australian arm has lost $600 million in the past five years alone, which underlines the utter stupidity at throwing taxpayer funds to prop up a failing enterprise."
Just read that statement again and think.
Capitalist system has any flaws. In recently concluded economic summit opined alarming inequality in income distribution. All most all government in the world are introducing policies to support corporate. In the past these corporate at least invest their in come , now things have changed the invested amount is also mobilized from public in the form of shares, remember the actual value of shares and market value will never be same it would be many times . The difference is siphoned by these corporate. Even if these companies are incurring the common people will suffer.
We have to think about a system which solve the flaws of capitalism
Simply to say, according to the mainstream economists like us, we learn from the text book that government intervention will reduce the social surplus.This will give a bad effect to the market, and thus a bad outcome to the main street. The free market should be free from any manipulation by certain individuals and also from the government. We need NOT more regulations,but EFFECTIVE and ENOUGH regulations.
That's like rewarding failure. In a market economy (I purposely omitted the word "free" because there should be regulations and socialized basic services), competition is necessary to promote innovation and lower prices.
This is something that Libertarians on the right and Progressives on the left should both oppose. It gives businesses that sense of Government cooperation. When a business cooperates with Government (Lobbying, anyone?), bad things can happen.
If the government was to get involved with the free market, you would not be able to stop them from intervening in other aspects of the market. The government would only save those that have the biggest fallout and with the most money. America was founded on small business, which the government would not save over the bigger Corp.
Entrepreneurs get into the business field with the knowledge that they can either prosper and fail. By bailing businesses, entrepreneurs gain the profits and security because the message they get is "I prosper, I gain. I fail, others pay the consequences." Failing businesses means that they are not stable in the economy and shouldn't continue.
The government is nothing but gluttony incarnate. It needs to take its heavy hand off the shoulders of entrepenuers and shrink down to the size intended for it in the Constitution. If the recent bubbles (stock market and housing) aren't enough evidence for this then I do not know what is. Http://www.Youtube.Com/watch?V=UvMGHzB37lo
It is necessary that the philibuster of the 1930's croatian civil war be retracted using many rodidendrums wrapped in coliflowers supported by chameleons. If poverty is to be extinguished we need to uncover the current rogue vs. Wade undercurrent sweeping babies out to the motherland and putting all the propaganda into the hands of Mr. Porksword himself.
In order to protect the economy, it is important that the government intervene through regulation. But bailing out large corporations simply misallocates resources, whereas bailout money can instead be used in a more logical setting, by investing in a more growing industry, or by putting into somewhere more useful such as education. Protecting corporations just because they are large undermines democracy, promotes crony capitalism and greatly benefits the rich. Bailouts impede in necessary structural change in the economy, and thus puts taxpayers money into waste. Large corporations should be allowed to fail, since it`s important that future corporations remain small so that they don`t remain a huge asset on the economy. It is never a good idea to protect corporatism, and failing corporations should be praised as a beneficial transition towards a more equitable, and more efficient economy.
That was are last frontier of a truley democratic society. Since the wall street bail out, were are no longer a demoratic society. We fit in to every catagory of a socialist society. This is America the land of the supossesd free. By taking are rights to own and run a business that is not government ran would only hurt us fruther. Seeing how the government has only raise taxes, and the country is still trillions of dollars in debit.