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Corporate welfare - Essay Example

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The term originated after the state used significant amount of money to support large corporations (Cay 67). It was created from that corporations may be having financial problems that may lead to…
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Corporate welfare
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Corporate welfare

Download file to see previous pages... In addition, at the time lenders and creditors were unavailable. Numerous corporations were facing closure due to huge financial debts. With an objective to sustain the economy, the government had to develop strategies that would keep these organizations open; thus the creation of corporation welfare (Cay 24).
Since is initiation the policy has been effective. Numerous corporations have been bailed out of financial crisis. In addition, the modern day corporate welfare policies are created to enhance the sustainability of major companies (Roger 44). For instance, agricultural subsidies in the United States are used to sustain large corporations in the industry (Roger 44). These corporations are able to sustain their financial burden.
The current corporation welfare strategies have been criticized. Majority of the people embrace the modification that the money could be more useful tothe poor not large corporations (Fisher& Peters 89). For instance, it could be more effective if agricultural subsidies are used to support farmers rather that the major institutions in the ...Download file to see next pagesRead More
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