The Road to Serfdom by F. A. Hayek - Article Example

The probability is high, that most governmental institutions will have to know how their reasons declined over policies implemented, in the industrialized or non-industrialized countries, at some time in their leadership operations.For example, many automotive corporate companies sought financial loans as a bailout to continue operations. Most companies were ordered by the Federal Government to formulate a restructuring plan in 2008, but, the government expects them to deal with their financial shortfalls (KTBS3).

Also, big companies are considered to have irreversibly huge assets and capitalizations, but, recent reports showed that most of them became marketably insoluble. An even worst scenario was the official declarations of bankruptcies. Estimates are that in the next months more and more gigantic companies will declare the need to be bailed out by government before they would declare they are broke and cease operations. These marks show that government reason to help people rather than companies cope with the natural law of supply and demand for resources has declined.

One easy way to tell that the rationale for government help on people to cope with the natural law of supply and demand for resources is downhill is its corporate financial rescue measures. For example, in 2008, the administration of Mr. George W. Bush bailed out General Motors Corporation to the tune of US$17.4 billion (KTBS3) when Gross Domestic Product from 1998 to 2007 were: 8694.6, 9216.2, 9764.8, 10075.9, 10417.6, 10908, 11630.9, 12364.1, 13116.5, and 13741.6 respectively (OCCD 2009). These consistently accelerating total market value of all final goods and services produced within the borders (Schiller G-3) of the United States of America in the given period obviously benchmarked liquidity and highly sound economy contravening any claims of economic difficulty or recession.

Also, this GDP figure grounds the truth that industries within the economy must have achieved economies of scale. "This level exists when the cost of producing a unit of a good falls as its output rate increases" (Parkin 207). For example, General Motors enjoy economies of scale, as the company employs highly skilled labor by division and cost-saving technology-enhanced equipment, thus, raising production level (Parkin 207). Subsequent to a knowledge of this information, most people find those bailout decisions are rather weak responses synonymous with declined national management reasons.

The perspective that people gained from the national management responses to claims of bankruptcy and financial bailouts despite high GDP, and economies of scale, strengthened their belief that there exists socialism. Nonetheless, many hypothesized that there is no such thing as National Socialism. It is only that the move or the administrative response was distasteful. Yet, at the other end of the stick, it is an obvious revelation.