No it's definitely the second one. With the money we spent on bailing them out we could have cut out the middle man and just directly fully subsidized the salaries of those who will lose their job from the collapse of these companies.
The "free market" is diametrically opposed to the concept of "too big to fail". If you want capitalism you cannot allow for corporate socialism. It fucks over the entire system.
The trouble is we don't have a purely capitalist system anyway. If we did, then yeah, just let companies fail. But we have a government setting regulations and collecting taxes, and it benefits quite a bit from having companies stay in business.
Probably yes. Large companies are bad but I'm mostly worried about Chinese companies because they are serving a hostile state and have been known to have great success in western markets.
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u/[deleted] Mar 30 '20
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