Research Paper - Schweizer 1 Matthew Schweizer Professor...

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Schweizer 1 Matthew Schweizer Professor Jacobs English 105 31 May 2010 Capitalism: Facilitating Bailouts? Capitalism is an economic system where wealth is privatized, therefore controlled by individuals (Wikipedia.) Capitalism involves free-market, a market without economic intervention and regulation by government except to enforce ownership (Wikipedia.) 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 (Wikipedia.) In 2008 there was much debate over bailing out the U.S economy’s failing auto industries. Following the financial crisis of auto industries was the fall of our economy as a whole. Bailouts were introduced to save leading industries. Government bailouts fashioned a movement that deceived the foundation to our Capitalistic society, which 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 therefore fostering an inferior financial crisis. Bailing out big banking companies, domestic auto industries, and big businesses is sure to promote a future financial collapse. When a government “bails out” anything, they are investing a large amount of capital to save others from total liquidation and ruin.
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Research Paper - Schweizer 1 Matthew Schweizer Professor...

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