Government Job vs Private Job Research Paper Example | Topics and Well Written Essays - 1250 words - 1

Government Job vs Private Job - Research Paper Example The â€Å"game† presents no investment in the future of the company or corporation, its merle an exchange of wealth. This scenario contributes many problems to the current operating business atmosphere. Mergers bring about immediate economic problems that include, loss of markets to foreign competitors, continuing trade deficits, inadequate operating capital, declining productivity, debt-heavy corporations, and loss of many jobs. The debt is due mainly to financing in order to carry out the merger. These problems plus lagging research and development add to the complications of business operations after the merger is finalized. Another factor that has played a significant role in the situation of state and federal government budgets now are government financial bailouts. The first of these was the Savings and Loan Bailout of 1989 due to more than half of America’s Savings and Loans failing between 1986 and 1989. This was primarily due to lax government lending policies. These business bailouts have directly affected the budget, deficits, and economic stability of our federal and state governments. The US passed the Emergency Economic Stabilization Act in October 2008 for a $700 billion financial sector bailout. This resulted in the bank rescue of 2008, which called for a $250 billion cash infusion into the banking system. The bailout of Bear Stearns in April 2008 ended in lending the firm $29 billion to JP Morgan to buy the troubled firm. Fannie Mae and Freddie Mac collapsed in the late summer of 2008. The federal government committed up to $200 billion to save both these giant mortgage lenders. Also, $100 billion in cash credits was guaranteed to each of them to prevent bankruptcy. American International Group (AIG), who was one of the largest insurance companies in the world. The government took control of the company and guaranteed them $85 billion in loans.