Browse By:

Saturday January 19, 2019 Login |Register

A Project of

sponsored by

The Closing of Profitable Plants: An Area for Government Restrictions?

Bookmark and Share Report Misuse or Glitches


The purpose of this paper is t o analyze the economic and political case-for plant-closing restrictions by specifically dealing with three central contentions.of its proponents. First, firms are closing profitable plants. Second, firms are "ruining" otherwise profitable plants by using them as "cash cows" (the meaning of which will become apparent). Third, the modern wave of industry conglomeration has reduced the ties of firms to the communities in which their plants are located and, consequently, has led to the closing of plants that, in the absence of the conglomerate movement, would have remained viable concerns.