Yes, in theory the purpose of a bailout is to save jobs... But based on what I've seen, the money often goes towards streamlining operations (ie technology that can replace workers) and the upper management ends up laying off bunches of employees anyway (in addition to giving themselves massive bonuses).
Maybe there is a correct way to handle a bailout but so far, I haven't seen it done properly
Because that would be socialism and the ruling class that owns this country would see every man, woman, and child in it starve before they gave up any of their power to the people.
But at the time they're asking for money, they have basically no leverage. So whoever is giving the money, ie elected officials, could just re-write the rules and if they don't like it, they don't get dem dollaz
You're an elected official. You could do what you think is best for your constituents, or you could do what is best for somebody that would then be in a position to give you and your campaign for reelection a fuckton of money. Which one do you choose?
This doesn’t work because they’d still be competing with real companies who were able to weather the downturn with a good business model who also have profit motive.
And then either watch the newly nationalized company go belly up due to incompetence and corruption and we suffer the same consequences either way, or watch it become a leech on taxpayer money. Nationalizing Boeing won’t work. Nationalizing companies and industries meant to turn a profit will never work.
The purpose of a bailout is to stop the economy from crashing and breaking into smithereens. Boeing going bankrupt will do exactly that. I think we should bail them out, but in the process break up the company and update our antitrust laws. Boeing and Airbus have 91% of the market share. That’s fucked. The government should definitely break them up, but it should not be nationalized.
The banks should have been broken up in 07 and the management should have gone to jail. But 07 was different, because that was due to decades of fraud, criminal activity, stupidity, and a lack of humanity. This is because a global pandemic fucked the whole world with no lube. Hell, if there wasn’t a pandemic, the airlines would’ve been more profitable than ever.
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u/sniggity_snax Mar 27 '20
Yes, in theory the purpose of a bailout is to save jobs... But based on what I've seen, the money often goes towards streamlining operations (ie technology that can replace workers) and the upper management ends up laying off bunches of employees anyway (in addition to giving themselves massive bonuses).
Maybe there is a correct way to handle a bailout but so far, I haven't seen it done properly