Should government bailout fiscally stressed corporations? Why, or Why not?
ANSWER THE ABOVE DISCUSSION QUESTION AND REPLY TO MY CLASSMATE’S RESPONSE TO THE ABOVE QUESTION AND EXPLAIN WHY YOU AGREE? (A MINIMUM OF 125 WORDS EACH)
No, I do not think that the government should bailout fiscally stressed corporations. Many large corporations have CEOs who make millions while their employees must worry about the stake of their future due to a “fiscally stressed corporation”. Taxpayers should not be responsible bailing out corporations who are irresponsible with business practices while people at the top are continuing to make financial profits. When an organization faces challenges and seeks government bailouts, it should not be able to maintain million-dollar incomes for CEOs. The initial conversation should be why is the corporation facing challenges. Are there other corporations out here essentially providing the same service, if so, why bail out the fiscally stressed corporation? Why not enable rival companies that provide the same services more effectively to replace the fiscally stressed corporations that require bailouts. There are various reasons that corporations fail some to include failure to plan for rainy days by building reserves, the failure follow trends in order to stay competitive, or committing fraudulent activities.
In 2008, Wells Fargo ended up getting a $25 billion bank bailout from the government, which has been repaid. In 2016, Wells Fargo was fined $185 million by the government over a sales scandal. The regulators alleged employees trying to meet aggressive sales targets opened bank and credit card accounts, moved money between those accounts and even created fake email addresses to sign customers up for online banking – all without customer authorization. This is an example of why fiscally stressed corporations should not receive government bailouts funded by taxpayers.
In the current state of times in which we currently live, I am for supporting small business owners who need government assistance. Small businesses help to keep rural and urban communities flourishing. Most of the time, the only businesses that wish to come into these neighborhoods are small business owners.