Research Paper final project sociology

Research Paper final project sociology - Schweizer 1...

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Schweizer 1 Poverty has always been an issue around the world.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. This revenue signifies a “clean slate,” which is at no cost to the entity if they fail again. There is no motivation to do better when free money is being spent. Bailing out failing units will inevitably lead to further financial predicament. “Bailing out large companies
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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 Penn State.

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Research Paper final project sociology - Schweizer 1...

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