Government Bailouts

[Swizzik]

Do you think government bailouts are right and neccesary? It reminds me of welfare, I'm not against welfare mind you I'm just kind of seeing that there's kind of a slight hypocrisy about the whole argument of whether it's right for the government to hand out money.

[-Logic-]

itachi

[6 Paths of Pain]

Idk but Ulquiorra soloes with Cero

[Swizzik]

lol

[sindi1997]

itachi

LOL

[zombiejesus]

to be honest most people on this sight wont know a good answer to this question because they are young and either dont care or just have never really thought about it and in some cases i do believe it is necessary but for the most part if a company fails it is due to their own inability to make it and they should not be handed free money no one gives me free money millions to boot i have to work and hard for everything i have ever gotten in this shit life and i think those companies should to

[Swizzik]

to be honest most people on this sight wont know a good answer to this question because they are young and either dont care or just have never really thought about it and in some cases i do believe it is necessary but for the most part if a company fails it is due to their own inability to make it and they should not be handed free money no one gives me free money millions to boot i have to work and hard for everything i have ever gotten in this shit life and i think those companies should to

Thanks for the thoughtful comment and taking the question a bit seriously.

[AP2k]

No one on this site has taken the proper economics classes to andwer this intelligently.

[Shinobi Train]

Well, on one hand, bailouts do sustain a company which is drowning and would most likely die otherwise, and that kills jobs and so forth. So it's not really a bad thing, however, all it does is sustain that company for a short time. If the economy doesn't go back up and they don't attract more customers, it's a goner anyway, so the money was just wasted. That's a risk the government weighs of course. Another solution is to re-distribute the money back to the people, that way they can go and buy what they want and everyone gets a piece of it. That doesn't last either and there's very little of it per person because there's so many people.

The one thing that no government in history has ever considered is cutting taxes and reducing the size of the government overall. Small government doesn't bleed the people dry, therefore they have more money to spend on a regular basis and thus sustain all the companies continuously. That doesn't ever happen though because government is blind and greedy. They don't want to cut down the size of government since some of the people that would be cut from it are the ones that would make the decision to do the cutting...and that would be like biting the limb you're standing on. Also they could stop paying people that no longer work for the government who have retired and that would help a lot, but again, who would be selfless enough to do that? It's a rather corrupt system...and the main problem is congress.

The reason I don't like bailouts is because it destroys the game. You see, life is a game. It's the same reason that communism just doesn't work. If said company is not motivated to do what's necessary to keep itself alive, then the company itself and all the people working in it are responsible. Why should they be given money after failing to do what's necessary? Same goes for people on welfare, why should they be given money for being failures? Also, nothing's stoping a person from just going out into the wilderness and living off the land and completely off the grid...it's not like they'd die just because they were laid off from work. Survival skills are poor though, and most forget that its an option.

Welfare is also just a major problem, there's this one girl I know of that keeps having kids so she can get food stamps; but instead of getting food with them, she sells the stamps for drugs. Her children go hungry since she only keeps enough food for herself, she shoots up all day long and beats her kids. It's not like a company can do any of those horrible things, but it's almost just as bad. Why let someone live off the government, person or company? Which companies are people, they have all the same rights and are considered people; that's how it should be of course.

The government needs to dramatically cut taxes, cut itself and stop supporting losers.

[Ultimate uzumaki form]

itachi

Idk but Ulquiorra soloes with Cero

LOL

:drive:

[Wang]

I'll take a shot at this: Some businesses are so large that they employ a very large section of a community. These businesses probably have an affect other businesses who are their suppliers & customers, which also employ a large section of a community. So, if the 1st business fails then everyone loses their job, & a chain reaction occurs where the supplier/customer businesses also fail. As a result there's no tax revenue for the government, and they have to pay unemployment to the all workers who lost their jobs. So, by bailing out these large companies the government avoids a major prolonged economic disaster, & the bailed out companies have to pay the government back the money they borrowed anyway. And now you know how bailouts work.

[Swizzik]

I'll take a shot at this: Some businesses are so large that they employ a very large section of a community. These businesses probably have an affect other businesses who are their suppliers & customers, which also employ a large section of a community. So, if the 1st business fails then everyone loses their job, & a chain reaction occurs where the supplier/customer businesses also fail. As a result there's no tax revenue for the government, and they have to pay unemployment to the all workers who lost their jobs. So, by bailing out these large companies the government avoids a major prolonged economic disaster, & the bailed out companies have to pay the government back the money they borrowed anyway. And now you know how bailouts work.

So does that mean that companies can be too big to fail? I mean if a company is so big it can technically never fail because the government will always save it so there isn't really any repercussions for it if it makes big mistakes?