For some, this represents a crucial intervention in a dangerous 2008 economic situation that saved jobs and prevented potentially disastrous consequences. [Generally, this refers to helping a large company with its debts with the intention that the company will repay the money in the future either through saving jobs or some other trickle down benefit to our citizens or by actually paying off a loan/bond]. For these, these bailouts and other stimulus measures were indispensable for economic recovery.
For others, this represents an overly aggressive intervention that interfered with a more efficient solution to real economic problems. For these, for instance, the bailout of the auto industry in 2008 was a major mistake - arguing that better results would have been achieved by allowing businesses to fail and market forces to reward more productive competitors (see Invisible Hand, Free Market).
QUESTIONS TO PLAY WITH:
-Was the bailout described above a good or bad idea in your view? Why or why not?
-Is bailout as a general strategy a good or a bad idea in your view? Why or why not?
-What do you think differentiates between people who see this in different ways?
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