Why should government bailout fiscally stressed corporations


Assignment:

200 words response to this question...Should government bailout fiscally stressed corporations? Why, or Why not?

Bailouts only kick the debt can down the road, especially for the American taxpayer. Instead of corporations receiving bailout money from the United States Congress/U.S. taxpayers, they should file for bankruptcy. The bailouts only allow those corporations who are in financial trouble to receive government monies and in turn, the taxpayers are on hook paying for it while those corporations get a free pass to continue to receive profits. The corporations that take financial risks in the name of profit should have to file bankruptcy and pay back the monies they borrowed in the first place.

The corporations always go for the bailouts to protect their shareholders or board of directors. If they file bankruptcy, the shareholders would lose their stock and ownership. Another issue with bailouts is the back door deals Congress makes with the corporations, which leads to the lack of transparency and increases government corruption.

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Business Law and Ethics: Why should government bailout fiscally stressed corporations
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