- Should the federal government provide any support/assistance for a specific company and/or industry in the U.S.? Explain.
There is a requirement of two postings minimum for each student. However, to receive full credit students must exceed the minimum. The comments must be substantive. Refrain from short postings such as “I agree’, “it is a good idea”, etc. You must clearly explain your position. There must be posting for both weeks of the module. I’m most interested in your personal opinion, but if you use some information from outside sources, you must provide references for those sources.
classmate1:The federal government should provide support/assistance for certain companies or industries that have a large impact on our economy, such as if they are providing a great number of jobs for our citizens. If a company is providing a resources or service that is nationwide, that is not only bringing jobs to the economy, but also revenue money to help spending in our economy. For example, back in 2009, the federal government intervened and took over GM and Chrysler. If the government hadn’t provided support for these industries, it would have greatly affected our economy, costing citizen jobs in all auto industry related fields such as middle man or outsourced manufactures, new car dealerships, and many plants assembles.
When the government provides support to companies like GM or Chrysler, it is also providing support and incoming jobs to first and second tier suppliers and manufactures. These supplies are companies that build machines or provide services for the larger industries.
classmate2:This has been a practice done by the government for quite some time as many banking institutions including Freddie and Fannie Mac, as well as auto industry competitors have taken federal bailouts. I personally, am not extremely educated on the topic and may be in line to learn something here, however, I believe the bailouts can have potential to be a good thing. There are many instances where these bailouts can sting the government, such as General Motors, Chrysler, CIT group, where billions of dollars have not been repaid. At the same time, there are other instances where there is a clear profit on these bailouts, in fact, to date the government has profited almost 76 billions dollars on bailouts. So long as the government is making money doing it, it is going to give these larger company’s the ability to stay afloat and keep people employed.