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China's struggling property developers won't be getting a major bailout, authorities indicated, warning that those who "harm the interests of the masses" will be punished.
A massive corporation going out of business sucks in the short term: people lose their jobs, among other financial woes. But if you keep bailing out failing corporations, you harm your economy in the long run because you’re keeping a company artificially on life support using budget funds. The company will continue to fail and lose money, setting your country back years in terms of productivity and innovation, and your economy will fold inwards.
Not only that company but any other one is going to be incentivized to be irresponsible with their accounting and financial practices. What’s going to happen if Google or Microsoft broke? Are they going to be rescued too?
A massive corporation going out of business sucks in the short term: people lose their jobs, among other financial woes. But if you keep bailing out failing corporations, you harm your economy in the long run because you’re keeping a company artificially on life support using budget funds. The company will continue to fail and lose money, setting your country back years in terms of productivity and innovation, and your economy will fold inwards.
Not only that company but any other one is going to be incentivized to be irresponsible with their accounting and financial practices. What’s going to happen if Google or Microsoft broke? Are they going to be rescued too?