Home Forums Hunting & Shooting Hunter's Campfire Why bailout any Corporations?

Nice post !

Capitalism for the lil guy, Socialism for big biz when times get rough, capitalism for them when times are good.


The govt along w other private sources encourages folks to set aside enough supplies & cash to get through a rough patch like we’re seeing now. Why not the same for big biz ?

I'm not a fan of gov't bailouts, but I get SOME of the rationale.

First of all, recognize that if these big corps fail, you are going to pay one way or another. So do you want to pay the corporations to keep employing people or do you want to pay unemployment for how many tens-hundred thousands for how many months?

If they fail, you will have a lasting drag on the overall economy. High unemployment kills retail jobs, which add to unemployment, which kills demand for manufacturing, which leads to more unemployment and more unemployment leads to more unemployment claims.

The government is going to be spending money. It's just a matter of where. Unemployment benefits and stimulus packages vs. propping up big employers.

Next, all business runs on profit margins. In 2018, Delta Airlines had gross revenue of $44 billion. Their net profit was $1.4 billion. The haters here will be chit-ting all over themselves screaming "Delta make $1.4 BILLION. Phouc them! They don't deserve help! Rich capitalists pigs! Vote Bernie!" The reality is that is about a 4% profit margin. Four percent is a slim profit margin. Planes are damned expensive to buy, maintain and equip.

None of these anti-capitalists cried in 2009 when Delta LOST $1.2 BILLION

So when someone throws out at you the idea that some really large corp makes a billion in profit, first ask them what that is as a percent of total revenue and then what happens when sales fall? How much do they lose and where do they get a billion dollars to cover losses? Is single digit profit acceptable to them?

This goes back to your question. "Business is a gamble" - yep. Failure in extraordinary circumstances happens. Recognize that if many major employers go belly up, it will be very painful and lasting to the economy as a whole. Think Great Depression painful.

Next part of your question goes to back to the profit margin. I use Delta for example because I have the numbers handy and they are large. 4% isn't a big spread. Sales go off 10% for a whole year and they go BILLIONS in the hole. Hope they have money on hand to cover that.

To the last part of your question (hope I understand all of your question, sorry if I misinterpreted) is "why should the gov't bail out any industry that is still afloat?" I wouldn't But, I will venture a guess that this admin is trying to get ahead of it and prevent 7-8-9% unemployment.

That's my perspective on the subject, at least for right now. Hope it helps.

They should sue all the media companies for losses caused by their intentional acts to cause disruption of the American economy.

Trade and money flow keeps them in business and the stocks strong. This means tax money to the government also. If we want people to have a job to go back to after this blows away, and for the goods and services these companies provide to be available, they need to survive and have a chance. Let's face it, economies in good times are like a house of cards, and something like this can knock things down to a point of no return for a smaller company. There will be companies either fold or re-organized over this mess even with some help.

I gotta disagree...

Governor’s, especially the Liberal ones with poorly run balance sheets - see State of Oregon, are always trying to distance themselves from the FedGov whenever a different party than there’s is in the WH, until really bad things happen...

Then they all sound like a fat baby being told mamas tit ain’t his anymore...Now, they want the federal government to do more, including fix their local fûck-ups for not being better prepared with a solid plan from all those disaster trainings they supposedly run.

I agree ...Government shouldn’t be paying workers special wages when private sector money that is stuffed in portfolios is available to assist the people who worked for them up until 4 days ago...😎

Some corporations do make millions per quarter or in some cases, per day. Depending on what they have invested, that may be a great deal, or a disaster. A rough example, if a corporation has a billion invested, and makes five million a quarter, they would be far better off, laying off all the employees, closing the doors, and investing the money in a balanced portfolio of investments.

Bailouts for Corps. is total BS - and paying Gov't workers who already get pensions/benefits that the vast majority of the private sector don't is BS . Agree with Mike Werner - you'll never see a working stiff get anything .

Get out there and fight it out trying to make a living all you tradesmen/private sector scum and small business owners and pay your damn taxes so the gov't workers can get their check every week on time without fail .

As stated - this crap is showing the millenial/Gen Z citizens that SOCIALISM IS GREAT , we all work together and share . Don't worry about standing on your own two feet - if anything happens there is always the safety net to fend off hardship for all . Yeh yippee -- bring back bernie .

if i just wrote the same exact thing as others it's because it took me 20min. to type it due too eating drinking coffee talking on the phone and typing with one finger .

Winner Chicken Dinner....We need to correct this by helping corporations learn they either survive or die without bailout money...Run your businesses better...😎

That's part of my point Beav. There has to be some private sector responsibility for their own well-being. I completely see people thinking the government has a part to play in economic stimulation through an influx of cash somehow in a time of economic emergency such as this. I'm not smart enough to know how that should or even can be done appropriately (subjective) and effectively. We've simply created a monster wherein Uncle Sugar always comes to the rescue of business. We've set a bad precedent in the past.

Thanks Jeff....😎

I’m not smart enough either...I believe after seeing the bailout of Wall Street has sickened most of us...Bailout is a nasty word when big bonuses get paid to the select few who can navigate a room of political influencers better than others and fly home with a fat bailout check forthcoming for their company or industry...I admit, it’s a helluva salesman who can make those pig fat deals happen.


😎

You have to get back to the fundamental reason that caused the issue we are in today which is reckless use of debt at all levels of society. Business people in "the greatest generation" came through war and depression and understood that debt can bite you in the ass and were very conservative with it. Managers of corporations did not borrow multiples of their equity and lenders sure as heck would not lend them that much. The people who are running America these days have only seen prosperity for the most part and only see debt as a way to goose their returns. The most far thing from the minds of consumers now days is foregoing current consumption in order to have something better in the future......they want it NOW and THEN and lenders are more than happy to let them borrow to get it. So here we are.

To hats point....There must be something necessary about doing it, since it’s had bipartisan hands writing these checks from the Oval Office in the past and apparently again, in the near future....Back to what I first wrote. “I pretty clueless about why it is, this way” 😎

What is the last thing any POTUS wants to go down as? The next Herbert Hoover. There is your answer.

Because having the world’s largest economy has tremendous advantages. The US can advance its interests like no other country simply due to that, and when our economic weight doesn’t work directly it also allows us to afford to build and maintain 11 active aircraft carriers while second place has 2.

Some relatively small investment now keeps what has been built from falling totally apart, and pays back orders of magnitude later by not having to be rebuilt from scratch or run the very real risk that it would be lost to somewhere like China forever.

LOLberterians and laissez faire types are like the black plague. They’ve been very nearly eradicated by mankind’s progress, but every once in a while they experience a tiny little resurgence.

Maybe because, if is wasn't for that paycheck to paycheck working the stiff, that CEO wouldn't be getting his 10 million salary. While there is a lot of fat in the public sector, there is a whole bunch in the private sector too. Every private company that actually produces something dreams of the government contract so they can cash in on the taxes those working stiffs pay. GD

Once folks realize that the stock market isn’t guaranteed to go up forever, the stock market will really be in trouble

Beav, the horse really left the barn with the meltdown. Once the Govt does something it never stops doing the same thing over and over.

Let's add to that Herbert Hoover point. After Hoover, Dems controlled the White House for the next 20 years. They Controlled the House from '32 to '94 and the Senate the same save for a couple of short periods with a slim majority. Don't want to see that again!

It doesn't matter now since the deed is done, but.....

There should be no bailouts, to anyone, corporate or private citizen. This has the potential to destroy the economy for years to come. It was already in the mix but was just thrown on the fast track.

The fed was running $23 trillion in debt before covid19 and the market crash. We are now looking at possibly $30 trillion plus by the end of the year. Consumer debt was a record $14 trillion+ before co19 and now with the panic buying(most on credit cards) and little to no income for many, possibly for months? Do the math. Corp. debt has been at record highs above that in 2008-2009...again, do the math.

Show me one country that has either taxed or borrowed its way into long term prosperity and I'll show you some ocean front property in Two Dot Montana I'd like to sell.