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
The government steps in to save business, typically when it will do more damage to let them fail. For example in 2008 bailing out the banks was unpopular, but it probably saved us from another Great Depression. It keeps industries moving, keeps America in favorable positions, and keeps people employed.
Also it’s a common misconception that the companies just get a big bag of money to do whatever with. They are often loans that get paid back, or sometimes they are just to keep payroll going so people are not laid off.
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