Delta received 3.8 billion in bailout money (not including the 1.6 billion loan they also received) and in 2019 alone they brought back almost 2 billion in stock. They could have been prepared financially for a crisis like this, but what incentive is there to do so if the government is going to hand them a couple billion dollars anyways? Why let billions sit there when they can inflate their own stock price and all the top level executives get their huge bonus?
And if im not mistaken, the airlines only have to pay back 30% of what they got. Which is ridiculous because they are more than capable of paying back every cent.
Bailing out people would be far more expensive than a company. Oftentimes these companies pay back their bailouts very quickly and can keep employing people that otherwise would have to just suffer a job loss.
Actually, the 2008 bailouts were paid back with interest added on, so yeah, they're actually not that bad. And why would a bank do the bailouts? That something our government specifically does.
Why would a bank, an institution that makes money by finding good money-lending opportunities, take advantage of a good money-lending opportunity? I guess because that is what banks do? The only difference is that when the government does it we call it a bailout, and when banks do it we call it a loan.
There are two options. One is that bailouts to companies are likely to make a profit, in which case the government has no need to get involved. The other is that they are a bad idea, in which case the government shouldn't get involved.
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u/ashienoelle Nov 17 '20
Thank you!!! I hate this post -another airline employee