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Unread 29 Jul 2009, 21:34   #27
Yahwe
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Re: Is Bigger Government Better

Quote:
Originally Posted by Tactitus View Post
The difference though is that stockholders are such mainly by choice (with some possibility of a profit to offset the risk they're taking) whereas taxpayers are not. As a stockholder, if I think GM is unsound or I don't like how it's being run, then I can sell my stock. As a taxpayer, if I don't like how the government is running GM, well, I still have to pay for it anyway.

And if, by some unholy miracle, GM is ever profitable again, I won't be getting any dividend checks.
No, it need not. Many companies aren't bailed out.

In capitalism, bankruptcy is not a bug, it's a feature. Poorly run companies should go out of business. Subsidizing incompetence does little to reduce or eliminate it; if anything, it only serves to increase it.
But private sector failures aren't necessarily bailed out. It's only the same if you accept the premise of crony capitalism, where some companies are not allowed to fail.

I don't accept that premise.
You are quite right...

... and of course America, being poorly run, virtually bankrupt, and the cause of global economic chaos ought also be allowed to fail.

Just quietly disband, leave your things in the corner, we're happy to take back control.

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