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
It’s going to cost the government less money to bail out an essential business than to let it fail.
That’s the long and the short of it. The government can loan a bank 1 billion dollars, or let it implode and spend 2 billion cleaning up the mess while the economy and taxpayers suffer.
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