3 ms·
>if Amazon stop running well then someone else will come along and replace them Is this really true though? Over the past few decades we've seen that if a comp
by wu-ikkyu 9y ago
>if Amazon stop running well then someone else will come along and replace them
Is this really true though? Over the past few decades we've seen that if a company is big enough, and it fails, the government will step in and prop it up with a bailout.
- barry-cotter 9y agoSears, K-Mart, Circuit City, Radio Shack. IIRC most of the companies in the S&P 500 didn't exist 30 years ago. I think the DJIA is mostly companies that are younger than I am. The US has an unusually dynamic economy. Bailing out companies is reserved for politically important ones (GM, Ford) or politically and financially important ones.
- travisp 9y agoIf that's the case, it's not a free-market economy, and you won't get those benefits of the free-market economy.
- asveikau 9y agoIt's weird to me to see "if that's the case" followed by an explanation of a possible bad outcome, written as if nobody has said this and it needs an explanation. It's a quite old idea. I have for many years heard the political left decry: we get socialism for the rich and capitalism for the poor. The Wikipedia page on "corporate welfare" says Ralph Nader used the term in 1956 -- which is much older than I thought having only been exposed to it ~20 years ago.
- Danihan 9y agoOnly for the financial sector though.
- wu-ikkyu 9y agoChrysler, GM, Ford, United Airlines, American Airlines, Delta, and Lockheed have all also been bailed out by the government.