Could Bail out Money be Used to Pay Bonuses to Employees (Essay Sample)

Bail out money not to pay bonuses
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The question as to whether bonuses should be paid to employees of companies which almost went bankrupt but didn’t because they took bailout money from government is hard to answer. Historically, such instances have been marred with numerous dilemmatic issues. As it happened with the Wall Street in 2008, what was supposed to be a win-win situation for the government, the banks and the employees turned out to be a scandal of its own kind in the world’s biggest economy (Treviño & Nelson, 2011). According to economist and financial analysts, bailing out a company which has been unable to make profits with the sole reason of securing employment opportunities to the citizens is a tricky situation. This is because there is no guarantee that the companies being bailed out will resolve their problems and make profits to pay back the money.
Therefore, there should not be anything like paying bonuses to employees with bailout money. The bail out money should be used to revive the company to its normal operations, where it is able to realize profits, and thereafter, employees can be paid with the profit (Treviño & Nelson, 2011).
Furthermore, the government should set defined rules that companies should abide by in order to qualify for a government bailout. This will ensure that the funds assigned to them will be spent in the right manner .By that, firms will strive to revive back their profits an...