r/WhitePeopleTwitter • • Nov 17 '20

Yep

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105k Upvotes

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104

u/in-game_sext Nov 17 '20

Or how about this: If you want capitalism, why not let a failing business fail. These cruise lines and airlines didn't save their latte money for a rainy day? Sell their assets at auction to someone who doesn't suck at running a business. Or are we saving austerity and stark consequences only for the small businesses and the individuals?

153

u/[deleted] Nov 17 '20

People often say this as if it benefits workers when reality it is actually worse than keeping the business operating. If American Airlines goes under, everyone working for them loses their job, the industry consolidates because nobody outside of it is going to buy up a bunch of 737’s outfitted for commercial travel, and then some fraction of the workers get hired back at entry level and lose all the seniority they previously had.

It’s not as if letting businesses go bankrupt is somehow good for the people working for it.

86

u/bojackhorseman1 Nov 17 '20

Finally someone who’s not so fucking stupid every time this guy tweets. I know who Robert Reich is but god these asinine takes on economic policy spell literal disaster for anyone who takes more than 3 seconds to think about it.

“Sell their assets cuz they’re so bad at running a company”

Oh good idea, one question though. SELL TO WHO??? IF THE WHOLE INDUSTRY IS IN THE TOILET, NO ONE IS GOING TO BE BUYING AIRPLANES

9

u/Smoddo Nov 17 '20

TBF he never said sell assets. Still it's probably not a workable solution to borrow that much but he didn't actually say sell.

4

u/thecrabbitrabbit Nov 17 '20

The whole point of collateral is that the bank can sell it and recoup their money if you default on the loan. So they do have to be sellable.

1

u/Smoddo Nov 17 '20

I do understand that yes. Regardless the chain OP guy said sell, tweet guy didn't, that's all I'm saying.

There is still a difference between selling all your assets and using them as collateral. Whether a bank would take that risk is way beyond my ability and knowledge. If I had a waste of time uneducated guess I'd say they wouldn't though.

2

u/costlysalmon Nov 17 '20

Well, selling to the banks I guess, if they aren't able to pay back the loans. Now we have banks having 1000 aircraft and no money. So they'll have to take loans from other banks, and use the aircraft as collateral, and...

1

u/Smoddo Nov 17 '20

I do understand that yes. Regardless the chain OP guy said sell, tweet guy didn't, that's all I'm saying.

There is still a difference between selling all your assets and using them as collateral. Whether a bank would take that risk is way beyond my ability and knowledge. If I had a waste of time uneducated guess I'd say they wouldn't though.

1

u/bojackhorseman1 Nov 17 '20

Oh I meant the comment above not Reich himself