How does bailing out massive industries with millions or even trillions of dollars compared to the general population help improve the economy?
In: Economics
Most of the cash is going toward keeping markets liquid. Banks and major businesses are freaked out enough to not lend to each other. The Fed is stepping in and making loans to big banks so they make regular business loans to keep regular businesses moving. Money coming to a halt has many other very bad effects in the economy.
Could someone in finance or economics please add to this?
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