Hello all,
I am not the most well versed in economics and am curious why the government bails out big businesses (like airlines etc.). On one hand I see posts and articles arguing it’s because those big conglomerates are in league with the government and then on the other hand I see it’s to protect workers/employment. In the grand scheme of the US economy, is it that bad to let businesses/corporations fail? (Regardless of whether those corporations are greedy/poorly ran.)
Thank you!
In: Economics
Usually, governments bail out businesses because of the wide ranging economic or geopolitical impacts that will be felt if they do not. It may be to keep banks from failing and causing all sorts of terrible financial effects (2008 could have been way worse). It could be to keep manufacturing base domestic as hedge in case of war — what if there were no steel production or vehicle manufacturing and war broke out with key suppliers of those industrial supplies? Airlines play key parts in terms of overall business, tourism, trade/shipping, etc. And for many countries, their flag carriers are a source of national identity/pride.
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