Should major corporations in the USA be allowed to fail, or should the government bail them out?

Question

Lets assume that the corporation does business all over the world, and is a major competitor in it's respective market. However, due to high labor costs, including the cost of health insurance, and some poor management decisions, the company is projected to go under within 24 months unless it can receive aid from the government. Should the government help it, or let it fail?

Answer 1

That's a difficult question.
My first knee jerk reaction in a free market system is to let the corporation prosper or fail on its own merit - or lack of merit.

But then there's the domino effect - do we have to consider the numerous companies and subcontractors that will fail if the large corporation goes under?

And which choice is simply economically more intelligent - to let the corporation fail with a large unemployment drain and several smaller supplier companies going down with the ship, or bail the corporation out with a zero or low interest loan?

There's obviously a lot to consider here - if a corporation is to be bailed out with my tax money, I would be very upset if the CEO and higher management people continued earning mega bucks for their overall poor performance. Perhaps an outside consultant team could be put temporarily in charge to determine if the corporation can be profitable or if it's just best to let it die a natural death.
Essentially, I guess I feel that, again, in a free market place, if private and commercial lending entities see it as too large a risk (at any reasonable interest rate) to loan the necessary funds for a bail out - I feel the same way when it's my money involved.

Answer 2

Let it fail. Government has no business interfering with the natural selection in capitalism.

This coming from a conservative.

Answer 3

I favor. I favor i can make undesirable monetary judgements and volatile investments and get bailed out at the same time as issues bypass incorrect. i wager if you're a large sufficient agency then you may do some thing with out problem of effects. i love each and each and every of the communicate about own responsibility at the same time as it includes persons moving into over their head and how they opt to handle it, even at the same time as their loan brokers confident them they could be advantageous. yet at the same time as it includes firms the guidelines are the alternative, they bought volatile mortgages, took opportunities and made billions. Now that they are seeing the outcome of those moves they cry to uncle sam to get extra tax payer funds to get them out of the problem they're in. what number tens of millions did the CEO and different executives make in the course of the time they were making those grasping judgements? yet they nonetheless get to save their own funds. they can retire to St. Barts and drink mai tais at the same time as elementary human beings are for closed on and lose each and every thing. we want actual replace, we received't save letting those who run firms that defraud human beings off the hook and bailing them out at the same time as at the same time as they get into worry. we ought to continually confiscate each and each and every of the executives assests earned in the course of the time at the same time as they made their volatile loans and use them to repay their firms debt.

Answer 4

Johnny Reb Is this your story?
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