If a business is consistently making losses, should the government
provide it with subsidies so it will be able to continue operating? Why or
why not?
A market is a social arrangement that allows buyers and sellers to discover
information and complete exchanges of goods and services all over the
world. Nowadays business plays an important role in the market economy,
as it creates different commodities for consumers, it also provides jobs for
people that allow them to make money. Business sets up and manages the
coordination of resources for the purpose of making profit.“
I strongly believe that it is necessary for the government to support small
firms for a number of reasons. Commercial companies are the main engine
of country’s economy, as their work produce economic growth. The situation
when business is not beneficial enough and looses big part of its capital
leads to recession in the national economy. Business is a good generator of
employment, and when things are going wrong, many people lose their jobs.
In order to protect population from unemployment and to keep social peace,
government must support unprofitable companies. Today, it is difficult for the
entrepreneurs, that produce social benefits, to remain competitive on the
market, these firms should be subsidized because they make socially
important goods and services that are necessary for comfort and safe
livelihood. “
