Gm Corporation

Case 1

Marxism is based on philosophical materialism; which has the view that all things in the universe are natural and follow the nature laws. Based on the study of society, Marx has the conclusion that the economy formed the foundation upon which all other society elements are based. Marx had based stated that the value use value is the value of an object to be able to satisfy some want or need, for instance a car’s value is the ability of the car to transport people from one place to another. When Marx made this definition he based it on the definition by Locke and Smith who stated that labor is the primary means by which value is created. In the case of GM bailout these three economists would have argued that value that is inherent in nature is a common property since it is not created by man; all other use-values that are not naturally inherent are the products of labor and are rightfully the property of the person who labored in its creation. The bailout of GM shows that capitalism as it was noted by the three economists, Locke, Marx and Smith is a complete failure and that taxpayers will be held responsible for other corporate failings.

It was reported that at the time the bailout was to cost taxpayers $30billion, in addition to the $20 billion in the U.S. funds which had already been put into the company. One of the benefits of the handout to the GM is that the government of U.S. was to own 60% of the new GM. The president said that they were acting as reluctant shareholder and also claimed that it was temporary and at the same time unavoidable at the moment.

The failed corporation that had not made profit since 2004 was given the money in six weeks. It had indicated tax it was to shut 17 factories and parts centers and throw 20,000 more workers into the unemployed ranks by the end of 2011. The numbers of the U.S executives were to be reduced by 35%. In addition GM was to close thirteen plants by the end of 2011 and the number of dealership was to...