About nine years ago, representatives from the three major American automobile c
ID: 1102839 • Letter: A
Question
About nine years ago, representatives from the three major American automobile companies went to Congress to request bailout relief from the U.S. government to prevent possible bankruptcy. This came after a major insurance company, financial corporations, and many banks had been given bailout money to sustain themselves and to make loans Do you think that the auto companies should have been bailed out by the Federal Government? Should big banks be allowed to fail? In capitalism, should there be private companies that are too big to fail so that the government (we, the taxpayers) must give them loans to stay in business? If so, please explain why. If not, please explain why. Please do research on these government bailouts before you give your answer.Explanation / Answer
The answer is...
An auto company means source of employment for thousands of workers working in that firm. So, according to my point of view if the firm can produce greater benefit in the future and if giving bailout by the Federal government can save the living of lakhs of people then it must give bailout.
Banks which are backbones of the economy of the country should definitely be not allowed to fail, because if they do so the entire economy of the country will get jeopardized. Precautions should be taken from beforehand to prevent this kind of mishaps and even if it happens special ways should already be planned so that the problem does not become fatal.
Everything is uncertain in this world, nobody can be accurately sure of anything,. Moreover in the past we have seen many big firms of many other countries to get shattered, so why should America be an exception. Yes, I except that we the tax payer have to provide loan to the bankrupted companies, but in a country like America where everything is privatized if three or four big firms break down, the govt would be unable to provide proper replacement job, so instead of being unemployed it’s much more better to finance those companies with loans, moreover when it gets back its flow it will definitely return the money.
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