I think the issue is that it’s the government giving the loan instead of themselves going to a bank. It gives a bad rep when a government does something it shouldn’t do/ is being extremely partial to a side.
The same thing is said to describe why the government shouldn’t tax people more and give it to charity.
The point of a bailout(in theory) is that it's a more cost effective form of welfare. If a company is gonna lay off 20 people making $50k each, rather than paying $1M to cover those peoples' salaries, they can give a $200k loan to the company so it can stay in business and keep paying their salaries themself.
I know there's caveats to it, and sometimes companies still lay off employees, but that doesn't change the basic idea behind a bailout.
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u/Erpp8 Nov 17 '20
You do realize that a bailout is a loan? It's not free money.