Monday, July 25, 2022

When Nations Bail Out Companies?

When nations bail out companies, the government or a government controlled entity acquires a stake or corporate bonds. They should give all tax paying citizens a share of the company instead.

That would be more equitable, in my opinion, since it is the citizens who pay taxes that fund the bail out.

Wonder if this will ever happen in the future? Long future, but...

Taxpayers would be more receptive to bailouts and some would be forced to open securities trading accounts, which securities firms should love. Would also serve to promote the stock market. If everyone is in, then the market can be artificially inflated to increase wealth?

All those Korean conglomerates that pledged to spend hundreds of billions of dollars and create more jobs just before district elections are now reducing the number of new employees for the year.