Bailing Out Private Industry with Taxpayer Money

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레포트 > 경제경영계열
2010.11.28
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소개글

Bailing Out Private Industry with Taxpayer Money에 대한 자료입니다.

I. The government’s decision is an unfair dealing.
A. Against the market liberalism.
B. Unclear standard for company that will get a help from government.
II. This is a temporary solution, so eventually it will be a waste of money.
A. The money that the companies are losing now.
B. The real reason of the Big Three companies’ bankrupt.
III. Even though some big companies are bankrupt, the economy is not going to be as bad as people are worrying about.
A. The present economic situation.
B. The expected result when the government doesn’t help them

본문내용

Every company is important in American’s market liberalism. Strong and good enough companies would survive, and weak and bad companies would be gone. This is the way how the free markets work and it makes success and fail that we need to accept under this condition (Sununu, 2008, ¶9). However, if the government helps those companies without a right and persuasive reason, then that would be a kind of discrimination policy.
Second of all, bailing out with taxpayer’s money is just a temporary solution, so eventually it will be a waste of money. When the government helps the private industries and it works, then there will be few complaints about its decision. However, people are complaining a lot, which means it isn’t working well. Also, we can see how it doesn’t work through some examples that we are talking about here.
The auto companies were losing $6 billion every month, so actually the $25 billion given to them can not be anything but wasting of money (Ikenson, 2008, ¶9). The government paid for their bankruptcy with no reason. Therefore, with this money, not only will they be unable to recover their damage, but also they cannot start to fix their problem (Ikenson, 2008, ¶14).
Moreover, even if the government had given them $25 billion, that also could not have been a solution because the real problem is not a lack of money. The real problem is the companies. These auto companies’ recession started before the current economic panic (Sununu, 2008, ¶2). That means their economic crisis is not because of the economy, it is because people don’t want their products anymore.
Eventually, the good companies and bad companies are recognized by their own abilities and qualities, and the American auto companies should not request any advantage from the government with the reason that they are the American Big Three companies. If people don’t want them anymore, then they can’t be the “Big Three” anymore. The government also should consider the long-term effects.

참고문헌

Clark, A & Crawley, J. (2008, November 5). US treasury reluctant to bail out 'big three'. Irish Times, Retrieved February 2, 2009, from Newspaper Source database.
Ikenson, D. (2008, November 28). Don't Bail Out The Big Three. Business Journal (Central New York), Retrieved February 2, 2009, from MasterFILE Premier database.
Oneal, M. (2008, November 17). Congress debates $25 billion bailout of auto industry. Chicago Tribune (IL), Retrieved February 2, 2009, from Newspaper Source database.
Sununu, J. (2008, December 5). A Big 3 bailout won't work. New Hampshire Business Review, Retrieved February 2, 2009, from MasterFILE Premier database.

#Private Industry #Taxpayer Money #GM #Chrysler #Ford #경영 #포드 #크라이슬러 #지엠 #자동차 산업 # 정부 지원 # 부도 위기

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