An economic and political system in which a country's trade and industry are controlled by private owners for profit, rather than by the state. An economic and political system in which a country's trade and industry are controlled by private owners for profit, rather than by the state. An economic and political system in which a country's trade and industry are controlled by private owners for profit, rather than by the state.
I think that government bail outs should be offered as a last resort to these companies. From what I've heard in the past, the owners of these companies have no qualms with giving out bonuses and using their private jets - even after accepting bail outs. If there are absolutely NO other options for the company, then I understand.
The economy of the US is based on capitalism. It has worked successfully for many years. When the government steps in and bails out large corporations we are undermining capitalism. Now it opens the door to who else should they help out and before you know it the government has its hands all over the private sector.
They started their business I believe that they should be able to make it out of debt and or financial problems. If I had my own personal business I wouldn't want a crutch. It shows weakness. Having the ability to make a successful business shows true strength and greatness. If Government did bail out business, well then everyone else has to pay for it.
By bailing out the large corporations, the U.S. government relieves these companies from the results of their horrible decisions and puts the taxpayers on the hook for their decisions. An examination of the government bailout of General Motors shows the impact of when the government intercedes on behalf of a major corporation. Prior to the bailout, GM was headed toward Chapter 11 bankruptcy. This was a needed step in the process to ensure GM remained profitable and competitive in the global market. But, instead of letting GM take this course, which has been taken by countless other large corporations including Hostess and Delta Airlines, the government interceded on behalf of the unions. As part of the bailout, the American taxpayer footed the bill to purchase 500 million shares of GM. When the company was taken public, the shares opened up at $33 a share. They are now trading somewhere in the mid $20 range, leaving the taxpayer on the hook for roughly $40 billion dollars. By this action alone, this should be proof enough that the U.S. government has no business in bailing out large corporations. They should stand back and let free market principles dictate the outcome of the company.
In a free market economy, the U.S. government shouldn't own or bail out any large corporations. Yes, the financial and auto industry bailouts were a necessary evil to prevent a worse economic catastrophe. However, large corporations should declare bankruptcy just like anyone else in the United States instead of getting government handouts.