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
Which bailout?
The Covid loans were designed to keep people employed while lockdowns and supply chain disruption were happening.
The auto bailout was because they are iconic companies and it would be a bad look for them to go under and their unions are politically active.
The bank bailouts during the Great Recession were to keep the credit system from locking up entirely and have to go through a depression before it could be reconstructed.
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