Public outrage at the bailouts and the government's haste in pushing through the economic package was huge and unprecedented, with other entities and industries also clamoring to be bailed out in a similar manner.
This objective of this essay is to discuss the morality of using tax funds to bail out ailing corporate entities to avoid them becoming insolvent and whether the government should initiate wage controls and strict accountability policies when providing such funds. With respect to wage controls, the questions to be answered are why and how much, rather to what degree government must step in to control and prevent the misuse and abuse of bailout funds. Each of these questions is addressed in the different sections which follow.
By its very definition, a capitalist or free market economy is built on competition and "survival of the fittest", with little or no government intervention. The success or failure of a business is determined by the way business is conducted and how such businesses deal with fluctuating market forces. ...Show more