Monday, April 10, 2017 8:13:33 PM
"Although the collapse of Lehman Brothers proved to be the largest bankruptcy in history, they were not saved because the U.S. Treasury believed that other major lending firms would pick up the pieces left and the overall industry would survive. However, in any instance, it should not be up to the U.S. government to decide which companies should live and which should die. The government should not be able to draw the line as to who gets help during a financial crisis and who does not, regardless of the industry and scenario. Giving the U.S. Treasury that much power hurts consumers as well as the businesses because they may not have proper judgement in what companies deserve to survive and get bailed out. The government should not play an integral part in any industry other than when it needs to enforce taxation and other regulations.
In return, banks and large private companies can not and must not be dependent on the U.S. government for financial security in the midst of a major financial crisis. This dependence on the U.S government may ultimately lead to business decisions that are not indicative of the best interests of actual business, but of the government, which demonstrates its unethical control over an industry.
Furthermore, because the U.S. government can not (and should not) spare every company that is on the brink of bankruptcy, it must choose what companies are worth saving which can ultimately lead to a bias. Because of this, companies could possibly be given the opportunity to escape bankruptcy due to possible internal motives of government officials. We can not have this type of bias in the US because it may possibly lead to bribery and an uneven playing field for businesses approved and enforced by the U.S. government. The only way to ensure that the government has no bias towards a specific company or industry is to remove the idea of a bailout in the first place. No bailouts means no bias, and a truly fair and capitalist economy for all."
Link: https://fordhamram.com/2017/04/09/no-more-government-bailouts/
mojo
“The ideas of debtor and creditor as to what constitutes a good time never coincide," P.G. Wodehouse, Love Among the Chickens
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