| Problem | Components |
|---|---|
| Policy issue area: | Economics |
| Policy issue: | Management |
| Description: | Actual and attempted corporate takeovers not based on real economic needs or benefits. |
| Symptoms: | Corporate and financial giantism and concentration; payoffs to corporate raiders; loss of jobs due to need to sell off or dispose operations. |
| Causes: | Insufficient rules and regulations to control the activity; a purposefully "hands-off" attitude by the Administration. |
| Cost of problem: | - |
| Solution | Components |
| Resources: | Federal government regulatory agencies. |
| Goal: | Ensure that corporate mergers and takeovers improve the economy and our competitiveness in international trade. |
| Program area: | Economic development |
| Program-remedy: | 1. A regulatory program to ensure that mergers and takeovers will result in a more
productive economy 2. Eliminate tax incentives which encourage uneconomic mergers and acquisitions 3. Regulations that prevent the rewarding of speculative takeovers (greenmail, golden parachutes). |
| Program-prevent: | National economic policy that encourages productive investments and economic growth based on profitable industries and enterprises. |
| Cost of program: | - |
| Beneficiaries: | Participants of the economy; workers. |