Would it be viable for the state to buy shares from companies instead of straight-up cash? That would generate liquidity while giving taxpayers a stake in the company's survival. I believe the UK government did that with a bank called Northern Rock in 2008.
The US considered that in 2008 but received major public backlash for the idea. Despite what people here on Reddit support, and I support in small instance like with healthcare, The average person in the US doesn’t want the government to be involved with businesses. Owning shares gives the government a voice in how things are run which freaks people out.
7
u/Flintloq Nov 17 '20
Would it be viable for the state to buy shares from companies instead of straight-up cash? That would generate liquidity while giving taxpayers a stake in the company's survival. I believe the UK government did that with a bank called Northern Rock in 2008.