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    Intervention in auto companies; reduce taxes

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    This is about government involvement in private business. There are 2 main issues and related questions.

    First, after 2000 the American automobile industry took heavy losses jeopardizing the main corporations, the numerous suppliers and approximately 300,000 workers. President Bush and the Republicans initiated a bail-out plan (loans to 2 of the 3 major companies) which was implemented by President Obama and the Democrats.

    Was is appropriate for government to intervene in this situation? Why?, Why Not?

    Second, should taxes be reduced to induce more spending or should the government collect taxes to fund programs and strategies causing increased money circulation?

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    Solution Preview

    1-Yes, look up Keynesian economics. It was appropriate because if the private sector and banks are unable to continue the flow of ...

    Solution Summary

    An intervention in auto companies to reduce taxes are examined.