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In the late seventies, Chrysler Corporation was facing bankruptcy during hard economic times. While Lee Iacocca worked hard to help Ford Motor Company succeed, his ideas and skills were not enough to keep Chrysler afloat. During these hard times, Iacocca knew that he needed help, and the only place to go was to the U.S. Government. While it seemed a long-shot, Iacocca explained to Congress that “if Chrysler collapsed it would cost the country 2.75 billion dollars alone in unemployment benefits” (Cole, 2004, Method section, para 20). In addition, Iacocca decreased management salaries considerably (including his own for $1 year) and went to work. With the government subsidy, Chrysler initiated a new, aggressive campaign and “…paid back the loans a full seven years ahead of their due date” (Cole, 2004, Method section, para 25). Chrysler – and Iacocca’s – success is an example of how government subsidies, when managed properly, are a positive action in the government.......

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Approximate Word Count: 1572
Approximate Pages: 7 (250 words per double-spaced page)

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