Should United States governors balance their budgets by raising taxes, Research Paper

Should unite States governors balance their budgets by raising taxes, cutting spending, or a combination of twain - Research Paper ExampleIt is only natural to realize that some things that have happened in the previous(prenominal) will directly affect what happens in the future. Therefore, one has to consider specific scenarios that have occurred in the United States which began in the 1980s with the mergers, acquisitions, takeovers, and buy-outs. Nothing happens without future consequences. Mergers, acquisitions, takeovers, and buy-outs are all a part of the business halt. Its merle an exchange of ownership that commonly involves stocks and assets that are transferred to another owner in exchange for up front cash or stock options in most cases that benefit high level executives. The 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 online operating business atmosphere. Merger s bring about immediate economic problems that include, loss of markets to foreign competitors, continuing traffic deficits, inadequate operating capital, declining productivity, debt heavy corporations, and loss of many jobs. The debt is due mainly to financing in enounce to carry out the merger. These problems plus lagging research and development add to the complications of business operations after(prenominal) the merger is finalized.Another factor that has played a significant role in the situation of state and federal official politics budgets now are presidential term financial bond certificateouts. The first of these was the Savings and Loan Bailout of 1989 due to more than than half of Americas Savings and Loans failing between 1986 and 1989. This was primarily due to lax giving medication 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 Eco nomic 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 spend of 2008. The federal government committed up to $200 billion to save both these giant owe lenders. Also $100 billion in cash credits was guaranteed to each of them to prevent bankruptcy. In kinsfolk 20089 the federal government took control of 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. In addition, the government took a 70.9 percent candour position in AIG, making this the first time in history that the government controlled a secret insurance firm. These are all major contrib utors to the economic environment of today. Can the government continue to bail out troubled businesses and over-extend themselves with even more debt? Economics is unpredictable and no one can opine what the future holds. But within this scenario, the federal and state budgets and deficits have to be controlled by some means. With these factors in mind, would an increase of taxes on a federal and state level fuel the growth of the economy? In retrospect the government must look for ways to cut budget spending with little or no detrimental feedback to private businesses and corporations. Its the common public consensus that government, both federal and state, need to control cuts and unnecessary government spending seems to be one option. There are several arguments about government bureaucracy, but its obvious that there is a great set up for civil servants. When hired, they are aim on probation for one year, after that they are granted tenure unless they do something illegal or catch an unforgiveable error their job security is all but ensured. This alone, would prevent federal and state representatives from