The bailout of the Chrysler Corporation by the fed...

Question

The bailout of the Chrysler Corporation by the federal government in 1979 was widely hailed as a success. Four years later Chrysler was profitable again, and proponents of the aimed that it had saved Chrysler from bankruptcy without costing the taxpayers one penny. But a closer examination of the facts of the case leads to a more complicated picture.

In 1979 Chrysler was on the verge of bankruptcy. Thousands of workers had been laid off, creditors were unpaid and the senior management appealed to the administration of Jimmy Carter to provide more than 1 billion in tax rebates. The administration's proposal, however, was not for direct tax relief but rather for federal loan guarantees, which administration officials were initially estimating at a value of $750 million but which ultimately totaled more than $1.2 billion. When in 983 Chrysler was profitable again, supporters of the ballout claimed that the taxpayers had saved Crysler from bankruptcy without having spent a dime, since the federal government had not had to pay for any defaulted loans. Chrysler is supposed to pay the government the difference between the guaranteed rate the loans carry and the rate they would have carried had they been issued without the government guarantee.

This is, however, not entirely the case. In the early 1980s Chrysler was allowed, under the terms of the bailout, to issue federally guaranteed bonds at a rate of 10.35 %. The Ford Motor Company, by contrast, was in better shape than Chrysler at the time, but was forced to issue bonds with a rate of %. It would seem then that Chrysler should have been paying the government a guarantee of at least 4%; in reality, however, Chrysler was only paying the government a guarantee of 1%. Further, he loss of jobs from cuts at Chrysler would have resulted in a reduction of payroll paxes to the federal government.

8. The author of the passage most likely considers the Chrysler bailout to be ....

A. a model for future government interventions 
B. a warning to those who would support planned economies 
C. an example of an unsuccessful government bailout 
D. more costly than its supporters suggest 
E. a political decision that was unfair to the Ford Motor Company

A. Mursyidatul · Accepted Answer

Halo Diandra, kakak bantu jawab ya.

Jawaban untuk soal ini adalah ''C. an example of an unsuccessful government bailout''.

Soal menanyakan pandangan penulis terhadap pemberian dana talangan kepada Chrysler Corporation.

Opsi jawaban:
A. model intervensi pemerintah di masa depan.
B. peringatan bagi mereka yang akan mendukung ekonomi terencana.
C. contoh bailout pemerintah yang gagal.
D. lebih mahal dari yang disarankan para pendukungnya.
E. keputusan politik yang tidak adil bagi Ford Motor Company.

Jawaban dari pertanyaan ini terdapat pada paragraf pertama dan terakhir teks. Pada paragraf pertama, pandangan penulis terdapat pada kalimat terakhir yang berbunyi, "But a closer examination of the facts of the case leads to a more complicated picture" yang artinya "Tetapi pemeriksaan lebih dekat terhadap fakta-fakta kasus ini mengarah pada gambaran yang lebih rumit". Sementara itu, pada paragraf terakhir, terdapat pernyataan yang berbunyi, "Further, the loss of jobs from cuts at Chrysler would have resulted in a reduction of payroll taxes to the federal government" yang artinya "Selanjutnya, hilangnya pekerjaan dari pemotongan di Chrysler akan mengakibatkan pengurangan pajak gaji kepada pemerintah federal".

Di antara opsi yang ada, yang sesuai dengan gambaran keadaan tersebut adalah opsi yang berbunyi, "an example of an unsuccessful government bailout" yang artinya "contoh bailout pemerintah yang gagal".

Jadi, jawaban yang benar adalah ''C. an example of an unsuccessful government bailout''.

Semoga membantu ya.

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