I get why a bailout can be important for the economy but I don’t get why the company just gets the money. Seems like tax payer money essentially is “buying” the company to me but they get nothing out of it.
Edit: whoa i woke up to a lot of messages! Some context to my question is that I am not from the US myself but I see bailout stuff in the news and as I understand it, the idea of capitalism is understood that “if you succeed then you make money and if you fail you go bankrupt and fold or get bought out” hence me wondering why bailouts are essentially free money to a company to survive which in my head sounds like its not really fair because not all companies are offered that luxury.
In: 12103
Because those bail outs are loans.
Dont get me wrong, i dont agree with bail outs whatsoever but in 2008 every bank that got a bail out paid the money back with interests
Because those bail outs are loans.
Dont get me wrong, i dont agree with bail outs whatsoever but in 2008 every bank that got a bail out paid the money back with interests
Because those bail outs are loans.
Dont get me wrong, i dont agree with bail outs whatsoever but in 2008 every bank that got a bail out paid the money back with interests
>Seems like tax payer money essentially is “buying” the company to me but they get nothing out of it.
They do though. They use taxpayers money to buy the company at a discount or to give them loans. And they then collect interest or sell the stocks for profit to fund public programs.
I guess what you’re really asking is “why don’t *I* get anything out of it? And the answer is because it all goes to the government, and the government isn’t very transparent with how your tax dollars are spent. So even though you directly pay for it from your pay check, you may not perceive any direct return on value.
>Seems like tax payer money essentially is “buying” the company to me but they get nothing out of it.
They do though. They use taxpayers money to buy the company at a discount or to give them loans. And they then collect interest or sell the stocks for profit to fund public programs.
I guess what you’re really asking is “why don’t *I* get anything out of it? And the answer is because it all goes to the government, and the government isn’t very transparent with how your tax dollars are spent. So even though you directly pay for it from your pay check, you may not perceive any direct return on value.
>Seems like tax payer money essentially is “buying” the company to me but they get nothing out of it.
They do though. They use taxpayers money to buy the company at a discount or to give them loans. And they then collect interest or sell the stocks for profit to fund public programs.
I guess what you’re really asking is “why don’t *I* get anything out of it? And the answer is because it all goes to the government, and the government isn’t very transparent with how your tax dollars are spent. So even though you directly pay for it from your pay check, you may not perceive any direct return on value.
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