An Ethical Analysis of Corporate Bailouts

McGee, Robert W.

doi:10.2139/ssrn.1304754

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An Ethical Analysis of Corporate Bailouts

Florida International University Chapman Graduated School of Business Working Paper

19 Pages Posted: 21 Nov 2008

See all articles by Robert W. McGee

Robert W. McGee

Fayetteville State University - Department of Accounting

Date Written: November 20, 2008

Abstract

This article examines corporate bailouts from several ethical perspectives. Utilitarian analysis concludes that bailouts cannot be ethically justified because the losers exceed the winners. Applying rights theory reaches the same conclusion for different reasons.

Keywords: bailout, corporate welfare, utilitarian, ethics, property rights, auto industry, rent seeking, economic democracy, Fannie Mae, Freddie Mac, financial crisis

JEL Classification: D72, D6, H81, M14, G34, D23, A12, A13

Suggested Citation: Suggested Citation

McGee, Robert W., An Ethical Analysis of Corporate Bailouts (November 20, 2008). Florida International University Chapman Graduated School of Business Working Paper, Available at SSRN: https://ssrn.com/abstract=1304754 or http://dx.doi.org/10.2139/ssrn.1304754