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Issues in Free Enterprise - Essay Example

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On the one hand, from an internal corporate perspective a megamerger may be beneficial in terms of the increased economic returns, tax advantages and increased spending opportunity for…
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Issues in Free Enterprise
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Issues in Free Enterprise

Ultimately, the benefit of a megamerger will intrinsically be related to context, socio-economic factors and the impact on all relevant stakeholders affected by a merger proposal such as stockholder profits, economic base of communities, and the new capital investment plans of area impacted, technological innovation, consumer choice (Davidson 1).
Matthews and Berman (1999) comment that the US social security system “was initially intended to provide financial security” (p2). However, the current system is suffering from funding challenges due to the pressures of the dedicated payroll tax system and it is estimated that by 2016 the expenses of the social security will exceed revenues (Matthews & Berman 2). This is further compounded by the reality of an aging population and lower ratio of paying workers (Matthews & Berman).
Additionally, whilst the current system is not in crisis, in the long term the social security system is unsustainable (Boyberg, 2005). Moreover, the US government has borrowed and spent the accumulated surplus funds and therefore reform needs to be considered now to address the future lack of sustainability of the system going forward.
Economic activity and expansion rates particularly in third world countries are changing the face of natural environmental systems and Michael posits that “human pressures on the environment are damaging the world’s biophysical and ecological systems” (Michael 2008). This argument would point in favour of the assertion that current activity is placing the earth at risk.
However, on other hand some commentators argue that the earth is going through various cycles and denounce the climate change aegis as an excuse to implement politically motivated agendas (Wodak & Meyer 114). Nevertheless, it is submitted that the balance of evidence would appear to tip in favour of ... Read More
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