GM Bailout Summary

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In the early 2000s, the United States government was faced with a dilemma, should General Motors (GM), the second largest, US based, global-automotive company, that employed millions, be bailed out? The dismantling of the organization would have a great impact on the economy. Some of the events that led to this bail out were the results of ethical egoism from the corporation. The Democratic Congress - GM Bailout, was an act of utilitarianism—a lot was at stake and could have had a negative long-term impact on the economy. The bailout package presented by the government would allow the corporation to restructure and save face with the public while reestablishing themselves in the industry. This paper will also, apply the ABCDs of ethical-decision …show more content…

Considering the Utilitarianism theory, the government is right to use the government, i.e., taxpayers’ money to receive money as a private corporation. Under Former President Barack Obama, the Democratic Congress, acted for the greatest good. The government has a responsibility to the people and should be held liable for the decline of the economy. If the company had filed for Chapter 11, it would have been a national catastrophe. The bailout resulted in stabilizing the automobile industry and saved jobs. The GM employees who were not union members would have lost their jobs (Maynard, 2009). The employees that remained would have immediate pay cuts, jobs would have been cut, and offices closed (Maynard, 2009). Because of this decision none of this occurred and the pensions and retiree health care benefits were protected (Maynard, 2009). This decision benefited all the stakeholders. Yes, the Michigan tax payers, were affect greatly by this occurrence, but if it had not taken place, the nation would have …show more content…

(2012, April 25). The Facts And The Figures Of The GM Bailout: Part 1. [Web]. Retrieved January 6, 2018 from http://gmauthority.com/blog/2012/04/gm-bailout-numbers/
Maynard, Micheline, Lieber, Ron, and Siegel Bernard, Tara. (2009, June 1). A Primer on the G.M. Bankruptcy. [Web]. Retrieved January 6, 2018 from http://www.nytimes.com/2009/06/02/business/02primer.html
Silke Carty, Sharon. (n.d.). 7 reasons GM is headed to bankruptcy. [Web]. Retrieved January 6, 2018 from http://abcnews.go.com/Business/story?id=7721675&page=1
Welch, D. (2009). GM Files for Bankruptcy. Businessweek Online, 13.
Welch, Suzy. (2008, November 18). GM: The Case Against a Bailout. [Web]. Retrieved January 6, 2018 from https://www.bloomberg.com/news/articles/2008-11-17/gm-the-case-against-a-bailout
Hollander, C., & Tankersley, J. (2012). Lessons From the Auto Bailout. National Journal, Rauch J. Rescue GM? It depends on which one. National Journal [serial online]. 2008:13. Available from: Opposing Viewpoints in Context, Ipswich, MA. Accessed January 6, 2018.
Zeigarnik, D. (2008, September). To Bailout of Not to Bailout?: THAT IS THE QUESTION. New Presence: The Prague Journal of Central European Affairs. p.

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