eli5: Government bailouts

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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

8 Answers

Anonymous 0 Comments

it depends who you ask and their take on economics and the roles of government.

many people will say government has no business keeping failing businesses afloat and others will say that its critical that certain business doesnt fail.

economic policy isnt a wholly settled subject and there are still good arguments for many different aspects…..like government intervention towards failing businesses

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