Question

Should the Federal Government follow the axiom that some companies are "too big to fail?"

Does GM owe an ethical duty to pay the government the money that the taxpayers lost on the bailout?

"Why" or "why not" for each question?

Answer 1

Any company if it went out of plan and proper management will fail no matter how big it is. There are many companies which ruled the world for decades but failed miserable in recent years resulting their shut down. Hence the government must not follow some companies are too big to fail.

Yes it is the responsibility of GM to pay the amount to the government because due to the bailout the money lost is that of people who are paying taxes tot he governemtn which means it is their money . Hence the government must spend that money to develop the country and help the taxpayers. Hence GM must pay the government the money lost on the bailout.