Government Bailout for Corporate Failures Essay

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Gup (2003) brings out that financial trouble is a periodical concern that occurs to banks, industrial companies and other organizations. Gup begins his article by reviewing the history and importance of government bailouts for corporate failures. In his article on “What Does Too Big to Fail Mean?” he uses rhetoric questions in order to engage the readers in his analysis of government bailouts. For instance, he poses the question, “what should governments and government regulators do about it?” (Gup, 2003, p. 29). ‘It’ in this case referred to the periodical financial troubles of the above mentioned institutions. By using the question, Gup engages the reader in trying to think about what the government can do in cases where businesses face…show more content…
This organization was meant to deal with the widespread business failures, unemployment and municipalities in financial distress. The RFC was however terminated in 1957 (Gup, 2003).
Gup presents a second option which governments can adopt in response to business failures by exploring extents to whicht governments can move to protect companies from their competitors. He gives the example of how in 2002 George W. Bush imposed tariffs on imported steel so as to protect selected ailing steel companies from foreign competition. Gup highlights the opinions of others who claimed that the move by the former US President was not an action taken in national interest but was aimed at gaining West Virginia and Pennsylvania votes (Gup, 2003). Here Gup uses a skeptical statement and attempts to make the reader aware that government action can be intended for political gain instead of the goodwill of the nation.
Gup also uses approaches aimed at narrowing down the scope of his article. He presents aspects of the wider topic about government bailouts and states that his article would not be reviewing those aspects. Gup in his beginning chapters warns the reader that there are also cases where there is the intervention of international bodies such as the International Monetary Fund, such as when the US Treasury and IMF aided Brazil, Mexico, Korea, Brazil, Argentina and other
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