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Let the Big Corporations Fail Big (My take on government bailouts during recession)

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@frederickbangs
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if you are involved in an accident, you do not get a bailout, if you have a small business with little staffs being employed and you head towards bankruptcy this period, the only thing you might get is a loan at a reduced interest from a bank but not a bailout, but CEOs of corporations that employ a lot of people can be very unreasonable with investment this period trying to risk money into so many other types of businesses because at the end of the day, the government will be willing to give them bailout during the recession because if they close up, the citizens will suffer. If you did not know, a lot of banks got bail out in the 2008 recession and there is a possibility that airlines will be getting bailout after this pandemic because they are losing money on a daily basis as they aren’t working. – Extracted from @gbenga The Recession Events (What will happen during this recession)

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I read a post by @gbenga titled The Recession Events (What will happen during this recession) and I was not happy with one of the events that the writer predicts might happen during this recession period and that is the government bailing out Big Corporations. In case you do not understand what the word bailout means, I will give a little insight into it.

Bailout was coined from a maritime act of removing water from a sinking boat with the use of a bucket. So a bailout can literally mean the provision of financial bucket to corporations or countries which I see as sinking ships so they do not fail. In simple words, providing money to corporations and countries to prevent them from sinking.

My first question is why give bailout to countries and corporation? Let me look at countries first. A country like Venezuela majors on oil and it is among the top 20 largest producers of oil in the world, in fact it is number 11 but Venezuela isn’t regarded as a rich country. To be more precise the country is ranked at 68th position based on GDP and foreigners are advised not to go to Venezuela because of the poor health system and other badly maintained infrastructures. A country like Venezuela should be among the top 10 richest country but I guess corruption might be the major reason why it remains at the position it is. It is understandable that for the sake of the citizens in countries that have bad leadership or poor finance could get a bailout, although this politicians use the money for personal purposes but what I do not support is countries bailing out corporations.

Should the government bailout this big corporation or should we let them go out of business?

For big corporations, the government will be coming to the rescue so they do not go bankrupt since they provide jobs for the average individual - @gbenga post

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It is true that corporations employ a large number of people in their organizations but that doesn’t mean they are too big to fail. Small businesses employ up to 45% of the population of a country so that means the remaining 55% of a country’s population are shared among corporations, the government and the unemployed. So I do not see reasons why this corporations get bailout. On the inner side of things, one of the major reasons these corporations get bailout is because they support during elections, play political games in affecting the nation’s economy and they believe they are too big to fail.

From my point of view, I would say no corporation deserves to be bailed out. If they are going to fail, then let them fail because they are not too big to fail. There are a lot of startups with brilliant ideas, and better business models compared to the big corporations. If any organization deserves a bailout, it should be the small businesses and companies. The big corporations do their best to kill smaller companies and do not give them a fear ground to compete so why should the government increase the chances of killing the smaller companies. Let the circle of real business take its place, let the big corporations fail so smaller ones can come up and customers can decide who they want.