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Creating too bigger to fail out of already too big to fail industries does nothing except throw good money after bad, and increase systemic risk for an even wor
by adam419 11y ago
Creating too bigger to fail out of already too big to fail industries does nothing except throw good money after bad, and increase systemic risk for an even worse repetition of a failure.
Not to mention the fact that continuously proceeding with such bailouts is simply unsustainable. The problem lies in our modern inability to stomach losses and handle austerity. It's something no one rightfully wants, but when market failures or financial crises occur, it's for a reason. You're witnessing a natural repricing mechanism at work and no one is disagreeing a lot of destruction can be a by product. But I don't buy your narrative that unless we saved those industries in the US they would have permanently moved elsewhere.
The economy is like an organism, not a washing-machine. The most optimal repairing mechanism is itself.
- trhway 11y ago>The economy is like an organism, not a washing-machine. The most optimal repairing mechanism is itself. organism have finite life, they die. Washing machine can be maintained/repaired indefinitely. Of course cyborg is the best way.
- adam419 11y agoIndividual organisms die. Short of existential events, ecosystems last.
- tcbawo 11y agoMorality aside, the US government acted in its own self-interest by protecting industries within its borders. It is likely had any major US automakers been liquidated, more wealth would have been destroyed than created. Extending the organism metaphor, forest fires can be a naturally occurring healthy event that promotes renewal. Sometimes, a fire will burn with enough intensity that the forest itself is destroyed. Should we try to prevent all forest fires, the most destructive fires, or let nature take its course?
- adam419 11y agoThe analogy only stretches so far but I think letting nature take it's course isn't as dangerous you think.
- deleted 11y ago[deleted]
- Nano2rad 11y agoPolitics also needs consideration. If other countries protect their industries and US does not what will happen?
- adam419 11y agoThen they'll be exposed to systemic risk and we won't.