Essay on The Bailout Of The American Economy

Essay on The Bailout Of The American Economy

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A corporate bailout is defined as financial support to a company or country which is facing bankruptcy (‘Bailout”). The earliest example of a government program to help solve economic failure, would be 1933. Roosevelt held the gold confiscation to bailout the banks at the time. By having the collected a total 600 tons of gold it would create a credible base for the United States. The problem was once most of the American citizen’s gold was turned in, Roosevelt then raised the price from 20 dollars to 35 dollars an ounce. There were a few bailouts thought the 20th century, but the large bailout, considered to be the bailout of the American economy, was in 2008. On October, 2nd, 2008 the Emergency Economic Stabilization Act was put into effect. 700billion dollars total was given to nearly 1000 different corporations that were facing failure. With the biggest bailout going to AIG with an amount of $67,835,000,000 ("Corporate Bailouts through History"). A critical issue regarding this topic is whether the government should be bailing out failing corporations. The major arguments are the following: Are corporate bailouts constitutional, are corporate bailouts affective, and are there any better alternatives to corporate bailouts? After careful examination it will be proven that the government should not bail out corporations.
The first argument is weather corporate bailouts are constitutional. The constitution is a set of guide lines set by the founding fathers in order to preserve freedom and it is what set America apart from the world in 1789 (“constitution”).
“We the People of the United States, in Order to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defense, promote the ge...

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...ed for repairing infrastructure, reforming health care, and any other government works programs. The $10,000 would be $20,000 in a house with two people, and would be able to cover payments on a $200,000 fixed mortgage even with the rates that we have today helping with housing issues. The money could also be put towards student debt, credit card debt, car payments, or anything that might bring a small amount of stability to a house hold. Also the money could also be put towards student debt, credit card debt, car payments, or anything that might bring a small amount of stability to a house hold. The senate and federal government are well within their rights to give back to the tax payers. I feel if this plan was implemented, it would directly help the American people in times of need and would give Americans the fuel they need to make this nation great once again.

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