We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

Federal Financial Assistance and Wage Control - Essay Example

Comments (0)
Summary
In 2008, the US Government implemented a $700 billion bailout package for the beleaguered financial industry, ostensibly with a view to stabilize the market and rejuvenate the economy. The money for this salvage project came from tax funds collected from citizens and instead of being used to fund public welfare and infrastructure projects, the money was diverted to bail-out corporate giants in the doldrums due to gross mismanagement and unsound business practices…
Download full paper
GRAB THE BEST PAPER

Extract of sample
Federal Financial Assistance and Wage Control

Download file to see previous pages... Public outrage at the bailouts and the government's haste in pushing through the economic package was huge and unprecedented, with other entities and industries also clamoring to be bailed out in a similar manner.
This objective of this essay is to discuss the morality of using tax funds to bail out ailing corporate entities to avoid them becoming insolvent and whether the government should initiate wage controls and strict accountability policies when providing such funds. With respect to wage controls, the questions to be answered are why and how much, rather to what degree government must step in to control and prevent the misuse and abuse of bailout funds. Each of these questions is addressed in the different sections which follow.
By its very definition, a capitalist or free market economy is built on competition and "survival of the fittest", with little or no government intervention. The success or failure of a business is determined by the way business is conducted and how such businesses deal with fluctuating market forces. In the current economic meltdown, it is quite obvious that many business entities played "fast and loose" with sound economic principles in order to maximize profits by following unsound credit practices and with inadequate risk management or controls in place. By doing so, they've traded long-term growth and profitability for short-term gains in the years preceding the sub-prime mortgage crisis. The latter acted as the trigger which brought down the American economy to its knees and led to the collapse of numerous financial institutions. This has forced the government to step in to bail-out distressed companies at the cost of its citizen taxpayers. Is such an intervention justified The answer is clearly a 'no', given the unique nature of a capitalist economy. Businesses are required to compete with each other in the marketplace, having a free hand in the usage of capital, labor and other resources, because the end goal is profitability.
A company or business entity which does not adhere to the principles of a free market economy, or tries to derive unfair advantages by misusing its powers, is doomed to fail in the long run. This is the natural consequence of unfair competition and the corporation must face the same in the natural order of the market. However, such large-scale failures of several companies at the same time can have a disastrous effect on the economy and society as a whole, hence it raises the question of government interference to avoid a catastrophe, a rationale advocated by the Bush administration and Congress in providing the $700 billion bailout in 2008.
According to Ingham (2008), in a capitalist economy, the market is a self-regulating entity and the state (or government) role should be limited to providing infrastructure and resources which help in sustaining a free market economy and intervening under only exceptional circumstances where the market fails to correct itself. Is the current economic crisis such a circumstance Common sense would indicate this to be so, but the next concern would be to what extent should the state intervene to resolve this issue
The answer to this concern can be summarized as ...Download file to see next pagesRead More
Comments (0)
Click to create a comment
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
Financial Analysis and Control Systems
59). Efficient working capital management is essential in the sense that cases of bankruptcy can be avoided because the business is able to balance needs and obligations. Therefore in understanding the significance of working capital management, focus is shifted towards its importance in budgeting and investment appraisal.
3 Pages(750 words)Essay
How did the New Deal changes the role of the federal Government
The new deal has four key goals: economic recovery, job creation, investment in public works and civic uplift. The first New Deal that lasted from 1933 to early 1935 was meant to aid in recovery from the Depression and assistance for the unemployed and the poor.
4 Pages(1000 words)Research Paper
Financial Management & control
The reason is that the company got lesser return on its capital and equity. The capital has not been efficiently utilized resulting in the decline in return on capital employed. Since the profitability of the company (EBIT) declined, it resulted in the decline of return on capital employed.
11 Pages(2750 words)Essay
Financial Control
Moreover, Balanced Scorecard helps in the establishment of effective internal and external communication in these institutions to facilitate efficacy in organizational performance. This is a system invented by Harvard Business School lecturers by the names Robert Kaplan and David Norton.
7 Pages(1750 words)Essay
Financial Assistance for a Struggling Student
With more than 60% student in the US relying on financial assistance for their education, the government has given them a bad news just before Christmas. The Senate has approved the bill to cut $12.7 billion from the Federal government's student-aid programs.
2 Pages(500 words)Essay
Financial control
Standards set are based on the first four months performances. Accordingly those shall be treated as short term standards for a year or so far beneficial. It is
4 Pages(1000 words)Essay
Financial Planning and Control
This paper analyses the different aspects associated with an engineering business model placing emphasis in financial models. The major topics covered in the
4 Pages(1000 words)Essay
Internal Control Over Financial Reporting
The price of the company’s stock should be affected by its quality of internal control system. A company associated with a poor internal control system poses a risk to the investor due to the unreliability of information. Such a risk would require a considerable return on investment, which imposes low prices of the stock.
5 Pages(1250 words)Essay
Summary of complexity and contradition in architecture
Venturi satirizes well thought-out spiritual arguments claiming that architecture of complexity and contradiction has a unique obligation towards the whole domain. When Venturi asks about the wealth and resources in Eldorado, it appears as if his issues might be overcome.
1 Pages(250 words)Essay
Financial Accounting and Control System
Dairy Crest is a company that deals in integrated dairy business. Its operations are mainly in the UK and Europe. Among its many dairy products are butter and spreads, cheese, milk, and cream as well as ingredients. The
2 Pages(500 words)Essay
Let us find you another Essay on topic Federal Financial Assistance and Wage Control for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us