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should the government invest in successful businesses?

I have an AS level Business Studies question that is about a business that almost went under, but pulled through and is now successful. The question reads; 'Crussh received no government support during its set up phase. Should the government invest in the business now? Explain your answer.' Surely the only money the government have is from tax, and so they shouldn't invest it if there is the chance they could lose it. I'm thinking that it isn't part of their job to invest. I'm really not sure, so any help would be useful. Please explain your answers! Thank you in advance :)

Asked By: - 9/30/2012
Best Answer - Chosen by Asker
If you want to see the truth in something, go to its origins... More
Answered By: David - 9/30/2012
Additional Answers (2)
Conflict of interests, there is too much opportunity for corruption. That's why O'Bama and friends was so insistent that the government didn't want to own GM but were being forced to do so for the good of the people. Governments should try to stay away from private industry whenever possible.
Answered By: John W - 9/30/2012
 
The government we currently have only invests in companies that are failing but to answer your question no the government should not invest in success fullbusinesses. For one, it is a conflict of interest due to the fact that there are many companies that "support" certain candidates and would then expect a return... More
Answered By: fishorgirl - 9/30/2012
 
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