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Is this the right trade? When a restaurant goes out of business, we do lose a kind of stock of wealth. It's a tuned machine (suppliers, cooks, customers, an evo
by papeda 7y ago
Is this the right trade? When a restaurant goes out of business, we do lose a kind of stock of wealth. It's a tuned machine (suppliers, cooks, customers, an evolving menu maybe) and now we're starting over from scratch with an untuned machine. That's a real cost to everyone.
- FartyMcFarter 7y agoYes, it's a cost. But so is bailing out the shareholders of businesses, who (by nature) are holding a supposedly risky asset.
- dahdum 7y agoGiving the business a grant is a cost, but how are loans? The US bank bailouts turned a small profit, and there's no reason that couldn't happen again this time.