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Unformatted text preview: Matthew Schweizer English 105 Prof. Jacobs Capitalism: Facilitating Bailouts? Outline I. Introduction A. Capitalism is an economic system where wealth is privatized, therefore controlled by individuals. Capitalism involves free-market, a market without economic intervention and regulation by government except to enforce ownership. Capitalism is associated with globalization, and has acted to increase the mobility of people and capital since the last part of the 20th century. A bailout is an act of giving capital to an entity (a company, a country, or an individual) in danger of failing in an attempt to save it from bankruptcy, insolvency, or total liquidation and ruin; or to allow a failing entity to fail gracefully without spreading contagion. B. In 2008 there was much debate over bailing out the U.S economies failing auto industries. Following the financial crisis to auto industry was the fall of our economy as a whole. Bailouts were introduced to save leading industry. C. Government bailouts fashioned a movement that deceived the foundation to our Capitalistic society and furthermore shaped a bogus image, the bailout will prove detrimental to our economic system by resurrecting a broken banking system, and giving lenders/buyers that made bad decisions an opportunity to fail yet again, and therefore fostering an inferior financial crisis. II. First Body Paragraph (1 st supporting reason) A. Bailing out big banking, Domestic auto industry, and big business is sure to promote a future financial collapse....
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This note was uploaded on 05/06/2011 for the course ACCOUTNING 211 taught by Professor Jobs during the Spring '11 term at Pennsylvania State University, University Park.
- Spring '11