The third of three debates that I wrote for a business class a few years ago. The purpose of the assignment was to debate a business issue in less 200 words. I hope some Business Administration students will find this helpful.
Debate 3: Should the House Bail Out Big Businesses
Mr. Speaker, we are here today to debate the resolution that the House should bail out big business. As side government, we support this resolution and believe strongly that it must stand.
When the failure of a major corporation would reverberate through not only its own sectors but across several sectors, causing wide-spread unemployment, the government should intervene, buying shares in the company and monitoring its operations. Moreover, as a condition of its investment in a troubled corporation, the government should conduct a thorough investigation and audit to ascertain whether the company’s financial shortfalls result from criminal fraud or negligence, prosecuting managers and executives as evidence against them warrants.
“We used to say, ‘As GM goes, so goes the nation,’” North American GM President Mark Reuss quoted the old adage as he spoke with reporters in January. In General Motors, we see a compelling example of a government bail-out’s benefit. Within eighteen months of the government’s investment in GM, the company streamlined its operations, sold-off its unsuccessful ventures, won wage and benefit concessions from the unions, and returned both to profitability and market leadership. Emerging from bankruptcy and bailout as an industry leader, the “new” General Motors repaid its debt to American taxpayers with substantial interest. Timely government intervention in a large corporation’s troubled finances has exactly the remedial effects workers and shareholders want.
Side government, Mr. Speaker, would like to thank the House for its time and, for the reasons stated, reiterate that we believe strongly this resolution must stand.
Thank you, Mr. Speaker.
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