If a company is “too big to fail” the punishment should be that the government bails them out, then breaks it up into smaller parts that are free to fail or succeed naturally without government intervention
Just nationalize them. If the government has to bail them out then then the government just bought them. If a company is too big to fail then it’s too big to be privately owned.
That’s what they did in my country when a bunch of the big banks almost keeled over in 2008/2009. They were temporarily (partly) owned by the state and eventually bought back their rights to operate as a separate business when things were going better again.
They also gave GM a 45 billion dollar stock swap and GM never paid it back. They paid back the loan but not the stock swap. Every time I hear people brag about how the government saved GM I wonder what amazing things any company could do with not only 45 billion to play with but the government ensuring that no one could take them down for a year.
Give me 45 billion and the full faith and credit of uncle sam, I will create so many jobs.
Mh, not necessarily. After 2009, many banks were just saved and not a lot else changed. Although admittedly, banks too big to fail have special monitoring and are subject to extra harsh rules, but they weren’t broken up.
Not much of a “punishment” to the business to have socialized losses. Oh you’ve mismanaged your ginormous business and it’s going to cause a huge, negative ripple effect on the economy and impact everyone else? Here’s some free money, courtesy of working class taxpayers! Also we’re going to break you up and place no restrictions on how big you can get so that one of your smaller entities can inevitably get enough market share to be in a position to do the same thing a decade later! Huh? Punishment? Oh… Uh… Don’t do that again please, Mr. Business, sir 🥺
Hard to effectively punish entities that feel no pain and are otherwise basically immortal
Best we can really do is mow the grass periodically (which the US gov has been failing to do for a LONG time now, although we’re starting to see anti-trust rumblings in the tech industry now thankfully)
A sovereign fund will be easier to administer. Issuing individual shares to people directly would be an administrative nightmare.
Allow the sovereign fund to acquire the shares, and then we can vote as board members in a national vote, though we’d probably just elect a representative for the fund.
Fuck all this representative bullshit. They never actually represent us.
That sounds like a great plan to have the money squandered.
Maybe the dividend is just applied towards your tax return, that would reduce the complexity of issuing 350k shares. I don’t want politicians getting their grubby hands on the money.
Maybe the government should give the money to the employees and if they feel that the company can make a come back they can invest the money in it. If not they can use the money to move on.
That seems fair. If the powers that be where I work for offered me to invest in the comoany itself I would do that. I bet I would get a better return over an index fund the way business is going. Of course they would find some way to fuck it up and corrupt it.
That’s not something that really works with industries that are zero sum games. You can’t have a dozen competing rail companies in a given state because there is only so many paths that a rail system can take, and you need to clear out continuous stretches of land through eminent domain.
If a company provides a vital services and fails, it should be nationalized. If a company does not provide a vital service and fails, it shouldbe allowed to fail and the employees themselves bailed out.
We could easily pay the debt down by taxing millionaires/billionaires appropriately. Or, since it’s totally fine for a country to run a deficit, invest it back in to infrastructure and climate reinforcement.
Other than all the proof from places that have tried pilot programs that it actually improves productivity, and the fact that government spending only increases inflation if they’re, you know, making inflation with a money printer.
Anything else you feel like being wrong about today?
Government debt is not the same as individual or corporate debt. Most of the US’s debt comes in the form of issuing Treasury Bonds, and most of the debt is owed to the American people. The US also controls its own money supply in which that debt is denominated.
Also, spending is only part of why debt goes up. A huge portion of the US debt has been created through tax cuts, e.g. the $1.5 trillion Ryan-Trump tax cut for high earners early in Trump’s presidency
Who cares if most of it is owned to rich Americans. If anything it is all worse because you are creating a totally non-thinking investment, an easy way for the rich to keep their money instead of them trying stuff like starting new ventures. Ever heard of the crowding out effect?
Yes the US controls its own money supply in very vague sense of the word “control”. If the fed tried printing it’s way out of debt inflation would cause collapse.
You really like the black and white arguments, don’t you?
Controlling a source of money doesn’t mean the only option is to print so much of it that inflation eats the whole economy.
Let me ask you this: if the US is so bad at managing the debt it owes to its people, how come we have functioned as an economy under that debt for the last several decades?
And you really like downplaying how shit things are.
Let me ask you this: if the US is so bad at managing the debt it owes to its people, how come we have functioned as an economy under that debt for the last several decades?
Let me ask you this: if smoking or being overweight is so bad for your health how come people can do it/be for several decades?
Got it? No? Alright let me break it down. Most of the debt we have was built up starting from 2001. A combination of two wars, tax cuts, defunding the IRS, and bailouts. So it isn’t several decades it’s 2.5. Now in that time period there have been 3 government shutdowns or 1 per 7 years. The current debt to collections ratio is second highest of a nation in the world and every other (ok not Japan) government hovering around that ratio owes money to the IMF which is another way of saying it is easy to erase.
The types of debt the US carries is far from simple with 10s of millions of individual creditors. And unlike Japan the high debts were accumulated in infrastructure, it was not for war or to give the wealthy a tax break. If the Japanese default they will still have their highways, if we default we still can take comfort in turning Iraq into a smouldering pile of rubble.
Our debt is huge, new, complex, and we have nothing to show for it. As long as it remains it grows faster than tax revenues grow to service it. Which means our government runs less efficiently. This is real dollars and cents. Projects don’t happen, food stamps don’t go out, roads don’t get repaired and all the while more and more money is transferred via income taxes to people who are already wealthy enough to buy our debt. Meanwhile the typical ways of getting out of debt remain out of reach. We can’t print money without inflation, we can’t get it forgiven because we don’t have one single major creditor, we can’t raise taxes because that would be unpopular, and we can’t cut anything without sending chaos out there.
But I forgot, since we aren’t immediately in risk of dying we have no risk of it. Have you considered a career in insurance?
^ did not read past the question. Guarantee it’s alarmist garbage about how we’re definitely going to die because of some imaginary numbers were living fine with.
Hey man, get off your high horse a little and I might start taking you seriously.
The US is already in $36 Trillion dollars of dept.
People have said, “the U.S. is already ___ dollars of debt” my entire 46 years as if that means something. What does it mean? Sometimes the economy goes up, sometimes the economy goes down. Debt keeps going up. It doesn’t seem to be changing anything.
Yeah I never understood people who fat shame people at the gym… It’s like making fun of someone for being addicted at a rehab clinic, it’s like making fun of someone for not having a job at a job interview… It’s lack mocking someone for having a problem in the middle of solving said problem.
I’ve never seen even the slightest bit of negativity at the gym. Come to think of it, I’ve seen almost zero negativity between any strangers on the street in like 10 years.
I fell off of keeping up with them after flying microtonal banana. They are a blast to see live, but when they drop 5 or so albums in a year there is no time for me to fully process everything they are doing.
Thank FUCKING God she’s someone else’s problem now…guys if she likes to look at herself in the mirror while banging…look for narcissistic tendencies…I wasn’t perfect but she was a terrible human being.
Edit: she was terrible for lots of reasons. Also she still owes money that I’m definitely holding my breath waiting to receive. Hahaha…grow yourself and find a partner not a codependent malignant soul.
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