As oppose to giving free money to the same failed business?
It’s because you (as a government of a private entity) dont bail out companies who’s business can’t work. Classic private equity funds buying distressed equity (or assets convertible to equity) take over management & set strategy, and overhaul the company or just wait a few years providing operating capital, then resell at a profit.
USA government just gives free cash to giant companies that sometimes even operate at a profit already (but had like paid out to much dividends & aren’t liquid enough to sustain themselves for 2 bad months, lul). That’s just direct transfers of taxpayers money to individual not-as-much-taxpayers.
As oppose to giving free money to the same failed business?
It’s because you (as a government of a private entity) dont bail out companies who’s business can’t work. Classic private equity funds buying distressed equity (or assets convertible to equity) take over management & set strategy, and overhaul the company or just wait a few years providing operating capital, then resell at a profit.
USA government just gives free cash to giant companies that sometimes even operate at a profit already (but had like paid out to much dividends & aren’t liquid enough to sustain themselves for 2 bad months, lul). That’s just direct transfers of taxpayers money to individual not-as-much-taxpayers.