CompoundInterestFan
Recycles dryer sheets
- Joined
- Jan 20, 2007
- Messages
- 222
Bloomberg.com: Worldwide
I really don't want this thread to get political; I'm just trying to look at this from an economics standpoint. On the one hand, if the government bails out GM, Ford, etc., it seems like it's just propping up a broken business model, and we're going to have no choice but to keep bailing them out. On the other hand, if you don't bail them out and they go belly-up, thousands (millions?) of people lose their jobs.
It's easy for me to sit here and say, "Let them fail! I don't want taxpayer money being used to bail them out!" But then I think about the fact that I'm still gainfully employed and able to provide for my wife and kid. However, lots of businesses go under all the time. The government can't bail them all out. My instinct tells me that if consequences are removed, then capitalism doesn't work.
What do y'all think?
I really don't want this thread to get political; I'm just trying to look at this from an economics standpoint. On the one hand, if the government bails out GM, Ford, etc., it seems like it's just propping up a broken business model, and we're going to have no choice but to keep bailing them out. On the other hand, if you don't bail them out and they go belly-up, thousands (millions?) of people lose their jobs.
It's easy for me to sit here and say, "Let them fail! I don't want taxpayer money being used to bail them out!" But then I think about the fact that I'm still gainfully employed and able to provide for my wife and kid. However, lots of businesses go under all the time. The government can't bail them all out. My instinct tells me that if consequences are removed, then capitalism doesn't work.
What do y'all think?